A publicly traded Canadian battery materials company has landed a new backer: the United States Department of Defense. And they’re partnering up to change the future of domestic cobalt supply.
What’s happening:
- Electra Battery Materials (NASDAQ: ELBM) has been awarded $20M USD in funding from the United States Department of Defense to accelerate the construction of their flagship cobalt sulfate refinery based in Ontario, Canada
Why it matters:
- Electra Battery Materials cobalt sulfate refinery is one of the most ambitious ventures aimed at bringing battery material manufacturing onshore and reducing North America’s dependence on foreign countries such as China for battery grade minerals that are essential for electric vehicle production and lithium-ion batteries
By the numbers:
- Once operational, Electra Battery Materials anticipates they will be able to produce 6,500 tonnes of cobalt annually
- 80% of all the cobalt produced will be purchased by battery manufacturing giant LG Energy Solution
Going deeper:
- The cobalt feed that will be used at Electra Battery Material’s new facility is being ethically sourced from mining giant Glencore and represents significant amounts of material that would otherwise be supplied to China
- This is not the first time the United States Department of Defense has made funding commitments to publicly traded companies focused on cobalt, previously partnering with Fortune Minerals (TSX: FT) and Lomiko Metals (TSXV: LMR) for advancing the domestic supply of both cobalt and graphene
Market reaction:
- Shares of Electra Battery Materials were up +52% following the announcement
The intrigue:
- The United States Department of Defense and the United States Department of Energy have also both previously provided funding to Talon Metals (TSX: TLO) to advance their domestic nickel projects in Michigan and Minnesota
