Toronto’s Electra Battery Materials Corporation has announced today they have signed an agreement to provide battery grade cobalt to LG Energy Solution.
The deal will see Electra supply 7,000 tonnes of cobalt to LG Energy Solution between 2023 and 2025 from their cobalt sulfate refinery in Temiskaming Shores north of Toronto near the Sudbury Nickel Basin, the only such facility in North America.
Electra will supply 1,000 tonnes of battery grade cobalt in the first year of the deal, followed by 3,000 tonnes in each of the following two years.
“LG Energy Solution is a global leader in the electric vehicle supply chain, and we are delighted to sign our first strategic supply agreement with such an important player in the lithium-ion battery market. This is only the beginning of a larger strategic relationship with LG Energy Solution involving our other assets and growth initiatives in the North American battery supply chain,” said Trent Mell, CEO of Electra.
According to a press release announcing the deal, the two companies will also explore “ways to advance opportunities across North America’s EV supply chain, including, but not limited to, securing of sustainable sources of raw materials.”
Electra’s refinery is expected to begin operations in the spring of 2023 and is currently in the late stages of commissioning.
At full capacity it should be able to produce enough cobalt to supply up to 1.5 million electric vehicles (EVs) per year.
The company is also exploring a second cobalt refinery in neighbouring Quebec which could be operational by 2025 or 2026.