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Be the first with the news that moves the market - Electra (ELBM) has signed a three-year cobalt supply agreement with LG Energy Solution
- The company will supply LG Energy with 7,000 tonnes of battery-grade cobalt from 2023 to 2025 from the only cobalt sulphate refinery in North America
- Electra’s refinery is expected to be operational by 2023, with the capacity to supply cobalt for up to 1.5 million electric vehicles per year
- Electra Battery Materials is a processor of low-carbon, ethically-sourced battery materials
- Electra (ELBM) closed up by 12.15 per cent, trading at $4.43 per share
Electra (ELBM) has signed a three-year cobalt supply agreement with LG Energy Solution.
LG Energy Solution is a leading global manufacturer of lithium-ion batteries for electric vehicles.
Electra will supply LG Energy with 7,000 tonnes of battery-grade cobalt from 2023 to 2025 sourced from the only cobalt sulphate refinery in North America, which is located in Temiskaming Shores near the Sudbury Nickel Basin.
A total of 1,000 tonnes of cobalt are slated for delivery in 2023, with a further 3,000 tonnes in 2024 and 2025.
Electra’s pioneering refinery is in the late stages of commissioning and is expected to be operational by Spring 2023. The company is also evaluating the second refinery in Quebec, tentatively scheduled for 2025-26, to process cobalt from its Idaho Cobalt and Copper Project.
Cobalt sulphate provided under the contract could supply up to 1.5 million electric vehicles, which would equal the refinery’s annual production at full capacity.
Electra and LG Energy have also agreed to collaborate on new opportunities within North America’s electric vehicle supply chain, including securing sustainable sources of raw materials.
The companies did not disclose the financial terms of the supply agreement. They expect a definitive agreement to be concluded in the coming months.
Electra is also constructing a battery-grade nickel refinery and a manganese refinery, as well as developing black mass battery recycling capabilities to recover lithium, nickel, cobalt, graphite and copper.
“This is only the beginning of a larger strategic relationship with LG Energy Solution involving our other assets and growth initiatives in the North American battery supply chain,” stated Trent Mell, Electra’s CEO.
“By establishing a strategic partnership with Electra, a key critical material supplier and only cobalt refiner in North America, LGES will continue to ensure the steady delivery of our top-quality products, thereby further advancing the global transition to EVs and ultimately to a sustainable future,” added Youngsoo Kwon, CEO of LG Energy Solution.
Electra Battery Materials is a processor of low-carbon, ethically-sourced battery materials.
Electra (ELBM) closed up by 12.15 per cent, trading at $4.43 per share.