Feds kicking in $5M for cobalt refinery construction in northern Ont.

The federal government announced Friday it is providing $5 million for the development of a cobalt refinery in Cobalt, Ont.

 “Today’s announcement will enable Electra Battery Materials Corporation to continue the recommissioning and expansion of its hydrometallurgical cobalt refinery in North Cobalt,” said a news release from FedNor.

“The facility will be the first facility of its kind in North America. Once complete, the refinery will be capable of producing cobalt for up to 1.5 million electric vehicles annually.”

The $5 million is in addition to another $5 million FedNor provided in 2020.

“With one of the largest concentrations of mining and related businesses in Canada, northern Ontario’s mining industry is a key economic driver that fuels social and economic growth, while creating jobs and opportunities for families throughout the region,” the release said.

“This investment also helps advance the Canada-U.S. Joint Action Plan for Critical Minerals Collaboration, by strengthening the North American supply chain for this critical battery mineral.”

Trent Mell, president and CEO of Electra, said developing a strong domestic supply chain for the electric vehicle industry is vital.

“Canada has surpassed China as the top jurisdiction in the global battery supply chain, given its strength in raw materials mining and processing,” Mell said in the news release.

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“We are grateful for this additional investment as it represents additional validation of our progress and will allow Electra to continue to work toward our goal of producing secure, clean, and ethically sourced materials that are a crucial part of a sustainable future for electric vehicles in Canada.”

Electra is a processor of low-carbon, ethically sourced battery materials. Currently constructing North America’s only cobalt sulfate refinery, Electra is executing a strategy focused on onshoring the electric vehicle supply chain.