Electra Battery Materials and ERG sign LOI for cobalt hydroxid, no terms

Electra Battery Materials and Eurasian Resources Group announced that they have signed a binding letter of intent for long-term supply of ERG’s cobalt hydroxide to North America’s first battery grade cobalt sulfate refinery. The agreement, effective April 1, 2024, supports efforts to onshore the battery supply chain and reduce reliance on foreign refiners. Starting from 2026, under the three-year supply agreement, ERG will deliver 3,000 tonnes per annum of IRA-compliant cobalt to Electra’s refinery north of Toronto…With this agreement, Electra has sufficient cobalt hydroxide feed material to meet all of the refinery’s annual capacity…Cobalt will come from ERG…Electra’s refinery complex, when completed, aims to be the first in North America to integrate the production of critical minerals, including cobalt sulfate and nickel sulfate, needed for the North American electric vehicle battery supply chain, and the processing of black mass material, designed to recover high value elements found in recycled lithium-ion batteries, including lithium, nickel, cobalt, manganese, graphite, and copper. Throughout 2023, Electra operated a plant scale battery recycling trial at its refinery complex, processing more than 40 tonnes of black mass material and producing high-quality nickel, cobalt and lithium products. Once fully commissioned, the refinery could produce sufficient cobalt for up to 1.5M electric vehicles annually. Electra’s low carbon hydrometallurgical refinery in Canada is permitted and has a current replacement value of approximately US$200 million. The Company requires an additional $60M in order to complete construction. The cobalt project has been derisked through the delivery of most long lead equipment and by commissioning the legacy refinery operations for the black mass demonstration plant.