The US$250 million refinery project is situated approximately 500 kilometers north of Toronto in Temiskaming Shores, a location strategically chosen to support North America’s expanding electric vehicle (EV) supply chain.
The grant is part of the US’ broader strategy to reduce its reliance on foreign sources of essential minerals used in the defense and technology sectors. The funding will be used to build a cobalt sulfate refinery, and Electra says it will be the only one of its kind in North America dedicated to producing battery-grade materials for lithium-ion batteries.
Electra paused construction of the cobalt plant last year due to a downturn in prices and higher-than-expected costs. CEO Trent Mell noted that the firm is in talks to get more funding from the Canadian government.
The new facility will contribute to the regional EV supply chain by providing a steady source of cobalt.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
Editorial Dislcosure: Fortune Minerals is a client of the Investing News Network. This article is not paid-for content.
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