TSX-V- and Nasdaq-listed Electra Battery Materials Corporation (ELBM) has signed a binding investment agreement with the Canadian government under the Strategic Resource Fund.

The latest agreement turns a prior indication of support for Electra’s cobalt sulphate refinery into a firm commitment.

The investment provides for total federal funding of $20-million toward eligible project costs, to support the completion of construction and commissioning of North America’s only battery-grade cobalt sulphate refinery, located in Temiskaming Shores, Ontario.

The federal funding includes a combination of repayable and non-repayable contributions.

The execution of the agreement marks a significant milestone in advancing Electra’s refinery project and follows extensive due diligence and discussions with the federal government since the initial announcement of support in 2025, Electra states.

“I have seen only a handful of moments where market need, policy alignment, and execution capability come together to create outsized value in my career, and this is one of them,” says Electra chairperson David Stetson.

He emphasises that the company has assembled the assets, partnerships and leadership required to build a strategically important business in the North American battery materials supply chain.  

Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, says Canada is accelerating its leadership in the industries that will define the global economy of tomorrow.

“By contributing to building a robust domestic refining and processing supply chain for critical minerals, we are strengthening Canada’s industrial base, securing high-quality jobs and positioning the economy for long-term growth. Strategic investments like this are how we build a more resilient economy that is focused on Canadian industry and workers,” she explains.

Canada Energy and Natural Resources Minister Tim Hodgson agrees, saying Canada has the critical minerals the world wants and the country can turn those resources into good jobs, stronger industry and more secure supply chains.

“By investing in the Temiskaming Shores Facility, we are investing in Northern Ontario, in the clean technology transition, and in building Canada strong,” Hodgson notes.

“Our focus remains on execution, bringing this refinery into production and establishing a reliable domestic source of cobalt sulphate. We appreciate the Canadian government for its support received to date, which helps drive the project toward our goal of achieving first production in the second quarter of 2027,” Electra CEO Trent Mell states.

Once commissioned, the refinery will have an initial annual production capacity of about 5 120 t of battery-grade cobalt in 2027, increasing to 6 500 t/y.

At full capacity, the facility will represent a significant global source of refined cobalt, a critical input for defence systems, consumer electronics and advanced energy storage technologies.

A majority of production will be sold to LG Energy Solution under an offtake arrangement announced earlier this year.

The refinery is expected to be a cornerstone asset in North America’s battery materials supply chain, enabling domestic production of a critical input currently dominated by foreign refining capacity. The project aligns with both Canadian and US policy objectives to localise critical mineral processing and strengthen energy transition infrastructure.

Moreover, Electra is advancing growth opportunities that leverage its expertise in cobalt refining, including battery recycling and an expansion into nickel sulphate production, supported by ongoing engineering and laboratory work, as governments in Canada and the US intensify efforts to onshore critical minerals processing capacity.