Electra Battery Materials Partners with Eurasian Resources for Cobalt Supply
Electra Battery Materials has entered into a significant agreement to bolster the North American battery supply chain by securing a deal with Eurasian Resources Group. This partnership marks a strategic move to process cobalt hydroxide at Electra's battery-grade cobalt sulfate refinery located north of Toronto, Canada. The collaboration aims at reducing North America's dependency on foreign cobalt refiners, aligning with efforts to strengthen local supply chains for electric vehicle (EV) batteries.
Under the binding letter signed on Monday, Luxembourg-based Eurasian Resources Group commits to supplying 3,000 metric tons of cobalt annually to Electra's refinery for three years starting in 2026. This agreement ensures that Electra will have adequate cobalt hydroxide feedstock to utilize the refinery's full annual capacity.
The cobalt, sourced from Eurasian Resources' Metalkol facility in Congo—one of the world's premier cobalt hydroxide operations—will enable Electra to refine battery-grade cobalt sulfate. Congo, accounting for approximately three-quarters of the global cobalt production and 90% destined for EV batteries, primarily sees its cobalt refined in China.
Electra's Canadian refinery, upon completion, is set to become North America's inaugural cobalt sulfate refinery designed to meet the surging demand for EVs. To finalize the construction of this hydrometallurgical refinery, Electra requires an additional $60 million investment. Once operational, the facility is projected to produce enough cobalt to power up to 1.5 million electric vehicles annually.
