Electra to nearly triple cobalt supply to LG

Article content Toronto–based Electra Battery Materials Corp. says it will supply LG Energy Solutions, one of the world’s largest battery makers, with nearly three times more cobalt than previously announced as companies look to “lock in” the supply of metals needed for the energy transition away from fossil fuels. Electra in September 2022 agreed to supply LG with 7,000 tonnes of battery-grade cobalt from its refinery that’s being built in Ontario’s Temiskaming Shores between 2023 and 2025. Under the updated deal, the company will supply 19,000 tonnes from 2025 to 2029. Article content “It’s largely to lock in supply,” Joe Racanelli, a company spokesperson, said. “There are two big battery plants being constructed in Ontario. There is growing demand for battery metals. Everybody is looking to lock in supply. If you already have an existing relationship, it makes sense to build on from there.” LG and Stellantis NV, which represents brands such as Chrysler, Fiat and Jeep, are in the process of building Canada’s first battery plant in Ontario, which is set to start production in 2024. Racanelli expects the companies to use Electra’s cobalt. LG wasn’t available for an immediate response. Electra’s new deal suggests it will begin supplying the metal later than previously announced. The miner aims to supply 3,000 tonnes in 2025, and hopes to provide 4,000 tonnes each year after that until 2029. The change was announced about two months after Electra withdrew its previous plan to complete its refinery this year because of budget constraints, supply chain disruptions and the receipt of damaged equipment linked to the refinery. The company is yet to announce new timelines for its refinery. Article content As a critical minerals producer, Electra hopes to counter China’s market dominance. China is currently responsible for 71 per cent of refined cobalt, according to CRU International Ltd., a London-based research firm, 76 per cent of refined nickel and 93 per cent of refined manganese, all of which are used in EV batteries. Electra considers selling assets as costs surge by 85% Electra says it’s figured out how to recycle critical minerals at scale Canadian miners eye more lithium deals China was able to claim a dominant position in part because North American and European companies were unable to match that country’s cost advantages. But in recent years, Western nations such as Canada and the United States have been trying to reduce their dependence on China, and rely more on friendlier nations. But Electra’s goal of competing with the bigwigs took a hit in May when it announced that the cost of building its refinery surged by 85 per cent. At 12:40 a.m. on July 24, shares of Electra were trading for $1.67 on the Toronto Stock exchange, up 32 cents or 23.7 per cent. The company has a market cap of about $59.5 million. • Email: nkarim@postmedia.com | Twitter: naimonthefield

This article was published by: Naimul Karim

Visit the original article here