OTTAWA (dpa-AFX) - The Department of Defense has awarded $20 million to Electra Battery Materials Corporation to expand domestic production capability of Cobalt Sulfate for large capacity battery supply chain in the U.S.
Announcing the award, the Pentagon said the funding will be utilized to construct an industrial scale hydrometallurgical plant and establish production of cobalt sulfate at the company's facility in Temiskaming Shores, Ontario, Canada.
The award utilizes funds from the Ukraine Supplemental Appropriations Act of 2022 and supports the 2024 National Defense Industrial Strategy goal of expanding domestic production of critical minerals. In June, the Government of Canada had announced its own $3.6 million award to Electra to advance the next phase of a battery materials recycling project started at the same refinery facility.
'This award will develop North American production of a key precursor material for large capacity batteries, helping to create a more robust industrial base capable of meeting growing demand across both the defense and commercial sectors,' said Dr. Laura Taylor-Kale, Assistant Secretary of Defense for Industrial Base Policy (ASD(IBP)).
It will be North America's only cobalt sulfate refinery, capable of producing battery grade materials for lithium-ion batteries, according to Electra. Currently, more than 80 percent of battery grade cobalt for domestic use is produced in China.
Once fully commissioned, the facility can produce 6500 tons of cobalt per year, which would support the production of more than 1 million EVs annually. The Canadian multinational company said LG Energy Solution will purchase up to 80 percent of capacity over the first five years and several buyers are now competing for the remaining production. It added that the cobalt feed material will be ethically-sourced from Glencore and Eurasian Resources Group mines in the DR Congo - material that would otherwise be shipped to China.
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