Electra Battery Materials will have the necessary raw materials covered to start its cobalt sulfate refinery in Ontario during 2027.
Glencore will supply approximately 10,000 tons of cobalt.
Electra Battery Materials extended its agreement with until December 31, 2031 Glencore for the cobalt supply destined for its refinery in Ontario, Canada. With the expansion, the company secures 100% of the raw materials required during the start-up and initial production ramp-up planned for 2027.
The agreement covers approximately 10,000 metric tons of cobalt held for five years, at current market prices, this volume represents a value exceeding US$500 million.
Furthermore, the delivery schedule will be flexible to adapt to the refinery’s progress, allowing Electra to coordinate the arrival of cobalt hydroxide with the facility’s needs during its commissioning and subsequent production increase.
The extension deepens a commercial relationship between Electra and Glencore that began in 2021, with the new term, the mining and commodity trading company remains a strategic supplier to the Canadian company until 2031.
Ontario refinery is progressing towards 2027
On the other hand, Electra expects to reach the mechanical completion of its cobalt sulfate refinery in 2027. The facility is designed to initially produce about 5,120 tons of contained cobalt per year and has a nominal crystallization capacity of up to 6,500 tons per year.
The project seeks to develop cobalt processing capacity in North America and connect the supply of raw materials with the regional production of battery-grade cobalt sulfate.
In this scheme, Glencore contributes its international supply capacity while Electra develops the processing necessary to convert cobalt hydroxide into material suitable for the battery chain.
Electra will also be able to incorporate other sources of cobalt hydroxide once the initial production ramp-up phase is complete. The company anticipates managing additional sourcing opportunities for 2028 and beyond, which would allow it to diversify its supplier base.
Electra has already committed a large part of its production
The supply of raw materials is part of the refinery’s business strategy, in March 2026, Electra updated a binding agreement with LG Energy Solution to supply battery-grade cobalt sulfate produced in Ontario.
That commitment covers approximately 60% of the planned cobalt sulfate production until 2029 and includes an option to extend the supply until 2032.
The remaining capacity will allow Electra to seek other buyers and respond to the demand for materials for batteries, energy storage and other critical mineral applications.
In this way, the project connects three points in the value chain, one is the supply of cobalt hydroxide from Glencore, another is the processing by Electra in Canada, and the demand for cobalt sulfate from battery manufacturers.
Cobalt strengthens the North American supply chain
The agreement is significant because of the role Electra intends to play between the primary production of cobalt and the battery materials market.
The company is currently seeking to establish regional capacity in Ontario to transform cobalt raw materials into battery-grade sulfate. This would expand processing capacity in North America and reduce the need for refining outside the region.
With initial supply 100% covered and a majority of its planned production already committed, Electra is now focusing its progress on completing the refinery and preparing for the gradual increase in production during 2027.
Source: Electra Baterry Materials
Photo: Shutterstock
