Electra Battery Materials, poised to become the only cobalt sulfate refinery in North America, is navigating financial hurdles as it works to complete its Temiskaming Shores facility in Northern Ontario. Construction at the site stalled in 2023 due to funding shortages, but the company remains optimistic about securing the remaining capital needed to resume operations.
In 2023, Electra received a $20-million grant from the U.S. Department of Defense as part of a national security initiative to strengthen critical mineral supply chains. However, an additional $80 million is required to bring the refinery into production. CEO Trent Mell remains hopeful that funding will come together in the coming weeks, despite ongoing geopolitical uncertainties, including the U.S.-Canada trade dispute.
“We’ve got a strategic partner willing to put in $20 million,” Mell said. “We don’t need much—we’re talking $80 million and this thing’s in production.”
Mell did not disclose whether the funding package would involve U.S.-based investors but noted that the company has strong support from both the Ontario and Canadian governments. “We have a lot of allies that want to see us succeed,” he added.
Once operational, Electra’s refinery will process raw cobalt sourced from the Democratic Republic of the Congo (DRC), the world’s largest producer of mined cobalt. The DRC recently imposed a four-month export ban on cobalt, but Mell believes this will not significantly impact the company’s plans.
“We’ve seen this before in the DRC. It’s a way for them to manage prices and royalties… it usually gets resolved fairly quickly,” he said.
Since the export ban, cobalt prices have been steadily increasing. “That’s great for our Western supply chain, trying to build in a stronger commodity price environment,” Mell added.
If the refinery reopens as planned in the spring, it will create approximately 150 jobs in Northern Ontario, benefiting local economies from Sudbury to North Bay to Temiskaming Shores. However, the company previously had to lay off workers in late 2023 due to the construction slowdown.
