Electra Battery Materials has secured funding from Canada’s Ontario province to complete construction of what is expected to be the first cobalt sulfate refinery in North America.

Electra said on August 26 that the C$17.5 million ($12.5 million) was awarded after finalising definitive agreements with Invest Ontario for the refinery in Temiskaming Shores, Ontario.

Once operational, the site is expected to be the only refinery in North America producing battery-grade cobalt sulfate, Electra said.

The refinery is designed to initially produce 5,120 tonnes annually of contained cobalt, with crystalliser nameplate capacity of up to 6,500 tonnes annually, helping address a critical gap in North America’s supply chain and reduce reliance on foreign refining.

Full commissioning and production ramp-up is scheduled for the third quarter of 2027, following by commercial production in the fourth quarter of the year.

Electra said earlier this year it had secured 100% of the cobalt feedstock required for commissioning and ramp-up through 2027 under an extended supply agreement with Glencore.

Trent Mell, CEO of Electra, said: “Ontario brings together a rich mineral endowment, a highly skilled workforce, abundant renewable energy and more than a century of natural resources expertise.”

Ontario economic development minister Vic Fedeli said: “At a time when secure supply chains have never mattered more, Electra’s cobalt refinery will onshore a key capability needed to support North America’s manufacturing sectors.”