Electra inks new cobalt supply deal with LG Energy

Electra Battery Materials (NASDAQ, TSXV: ELBM) has signed a fresh deal with LG Energy Solution that would see the company supply battery-grade cobalt to the South Korean firm through at least 2029.The parties on Tuesday signed a new term sheet outlining Electra’s commitment to supplying 60% of the cobalt sulfates produced at its Ontario refinery, which is currently under construction. The supply agreement is valid through 2029, plus a three-year extension option.This agreement follows an initial three-year agreement signed in 2022 and the subsequent five-year extension announced in July 2023, reflecting Electra’s updated production timelines under the contract.Construction of the cobalt refinery in Temiskaming Shores, located 500 km north of Toronto, had been delayed since August 2023 due to cost overruns and supply chain disruptions. Work restarted in November 2025 after Electra secured funding to complete the $250 million plant.Early commissioning is slated for the fourth quarter of 2026, followed by a year of ramp-up to commercial production. To meet this schedule, the company last month approved a $73 million construction budget.First mover“The updated agreement underscores the strength of our long-standing partnership and LG Energy Solution’s role as a cornerstone customer in Electra’s vision to build a resilient, North American supply chain for critical minerals,” Electra’s CEO Trent Mell stated.Currently, about 90% of the world’s cobalt sulfate comes from China. At full capacity, Electra’s refinery is expected to produce 6,500 tonnes of this battery-grade material annually, becoming a key supplier to the Western market. It is also expected to be the first cobalt refinery on the continent and just one of two major facilities outside China.“This offtake agreement reflects growing demand for secure and responsibly sourced cobalt and reinforces Electra’s position as a first mover in domestic critical minerals processing,” Mell added.Shares of Electra Battery Materials shot up by 7.5% to C$1.00 apiece on the news, giving the company a market capitalization of just over C$100 million ($74 million).Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com