A former silver mining region in northern Ontario is set to become the site of North America’s inaugural battery-grade cobalt refinery. The adjacent town, appropriately named Cobalt, appears to be embracing its namesake. The upcoming facility will transform mined cobalt rock into cobalt sulfate, a crucial component in lithium-ion batteries utilized in various technologies like electric vehicles, smartphones, and military aircraft.
Electra Battery Materials, the firm spearheading the initiative, anticipates the plant to be fully functional by the close of 2027, with a potential output of 6,500 tonnes of battery-grade cobalt annually, sufficient to supply around one million electric vehicle batteries each year. Trent Mell, the company’s founder and CEO, emphasized the growing necessity for these vital minerals in powering modern society’s technology, highlighting the significance of national security beyond just automotive and grid power applications.
The refinery’s laboratory, overseen by Graham Kinsman, Electra’s metallurgical lead, is actively refining chemical and physical processes to eliminate impurities such as iron and copper from the cobalt. The refined cobalt product enhances battery stability, preventing overheating and prolonging charge retention.
Despite Cobalt’s historical mining associations, the refinery will not locally or nationally source mined rock but will import it from overseas. The town derived its name from the discovery of cobalt during the construction of the Temiskaming and Northern Ontario Railway in 1903, although silver took precedence during that era, triggering a major silver rush that peaked in the 1920s.
Mining companies in recent years have explored cobalt prospects in the old silver mines, searching for the distinctive pink “cobalt bloom” indicating cobalt presence but have yet to identify a sustainable vein. Mell’s previous venture, First Cobalt Corp., transitioned to Electra in 2021, initiating the conversion of a former metals refinery in the vicinity.
The cobalt supply will originate from the Democratic Republic of Congo (DRC), where a significant portion of global cobalt is mined, and will be transported over 20,000 km by sea to the Port of Montreal, then trucked about 700 km to Cobalt. Mell reassured that steps are being taken to address concerns regarding mining practices in the DRC, underscoring the importance of audits and oversight by experts to ensure ethical sourcing.
The construction of refineries like Electra’s in Canada’s critical minerals supply chain could potentially foster domestic mining activities, reducing reliance on foreign imports in the future. Mell stressed the increasing demand for cobalt, particularly in military applications, as a driving force behind the project’s objectives.
China currently dominates the battery-grade cobalt supply chain, refining over three quarters of the global supply. Mell highlighted the risks associated with such monopolies, pointing out recent export controls imposed by China on critical minerals companies and emphasizing the need for a diversified supply chain to mitigate geopolitical risks.
Electra aims to supply a significant portion of the world’s cobalt sulfate output by next year and has secured a supply agreement with LG Energy Solution. The project has received financial support from federal and provincial governments, as well as interest from the U.S. Department of War. Mell emphasized the geopolitical significance of securing a portion of the cobalt supply chain locally to navigate potential disruptions in the global market.
