Impact: Positive
Electra Battery Materials announced that it has received a C$5M grant from the Government of Canada to help with the construction of its cobalt sulphate refinery in Ontario. The grant is part of the Federal Economic Development Initiative for Northern Ontario (FedNor). Importantly, this is not debt, and the Government is not taking any interest in the company or project in return. It represents ~6% of the US$62M remaining capex required for the completion of the project. We believe this grant is a stamp of approval for the support that ELBM enjoys from the Government and could potentially de-risk the financing process for the remaining capex. Electra already has an offtake agreement with LG, which has been extended to include 19,000 tonnes of Co sulphate beginning in 2025, representing ~80% of Electra’s expected annual production. The refinery is on track for commissioning in H2/24. Once fully commissioned, it could produce up to 5% of the global supply of battery-grade cobalt, sufficient for ~1.5M EVs.