Electra cobalt sulfate refinery restart boosts North American battery supply

Electra Battery Materials

Electra cobalt sulfate refinery restart marks a critical step in building a localized EV battery supply chain in North America. The Electra cobalt sulfate refinery restart in Ontario aims to deliver 6,500 t/yr of battery-grade cobalt from 2027. As a result, the Electra cobalt sulfate refinery restart strengthens regional security of supply and reduces reliance on imported cobalt chemicals.

Government-backed financing underpins refinery construction

Electra secured $82mn in project financing to restart construction after 2023 financial and supply chain setbacks. The funding includes $48mn from the US Department of Defense and the Canadian federal government, highlighting cobalt’s strategic importance. Meanwhile, Invest Ontario added C$17.5mn, reinforcing Ontario’s ambition to become a battery materials hub.

The refinery will produce battery-grade cobalt sulfate, a key precursor for high-nickel and cobalt-bearing cathode chemistries. This production will support EV and energy storage manufacturers seeking IRA-compliant and geopolitically secure feedstock. The project also fits broader efforts to onshore critical minerals refining in North America.

Integrated cobalt feedstock strategy across Canada and the US

Electra is already testing feedstock for the refinery at its Ontario laboratory. The company uses material sourced from historic Cobalt Camp and the Iron Creek copper-cobalt project in Idaho. This integrated approach links upstream mining projects directly with midstream refining capacity.

The firm plans a rapid scale-up in staffing as construction resumes. Headcount will rise from 30 to 150 early next year, supporting engineering, operations and ESG compliance. If execution stays on track, the refinery could become a cornerstone asset in the regional cobalt chemicals ecosystem.

The Metalnomist Commentary

Electra’s move shows how policy support and blended public-private capital can unlock stalled midstream projects in critical minerals. For cathode producers and automakers, an additional Western cobalt sulfate source offers both supply diversification and regulatory advantages. The key watchpoint now is execution risk on capex, commissioning, and reliable feedstock flows from Canada and the US.