Sign up for our popular daily email to catch all the latest EV news!
Electra Battery Materials Corporation and Eurasian Resources Group (ERG) have forged a significant cobalt hydroxide supply agreement, marking a pivotal move towards enhancing North America’s electric vehicle (EV) battery supply chain. This partnership, set to commence in 2026, aims to provide a stable supply of cobalt, a critical component for battery production, thereby reducing dependence on international sources and strengthening the domestic battery manufacturing sector.
Key Highlights:
- Electra secures long-term cobalt supply from ERG, starting in 2026, for its refinery in North America.
- The agreement aligns with efforts to onshore the battery supply chain and supports the United States Inflation Reduction Act (IRA).
- Cobalt will be sourced from ERG’s Metalkol operation in the Democratic Republic of the Congo, one of the globe’s foremost cobalt hydroxide producers.
- Future collaborations may include a second refinery in Bécancour, Quebec, further bolstering the supply chain infrastructure.
In a move that underscores the strategic importance of localized supply chains in the burgeoning EV industry, Electra and ERG have committed to a three-year supply arrangement that will see ERG delivering 3,000 tonnes per annum of IRA-compliant cobalt to Electra’s refinery north of Toronto. This deal ensures that Electra has the necessary cobalt hydroxide feed material to meet its refinery’s full annual capacity, positioning it as a key player in North America’s push towards electrification.
“Partnering with a recognized leader in sustainable mining practices is essential for Electra to produce secure, clean, and ethically sourced battery materials,” remarked Trent Mell, CEO of Electra. His statement underscores the strategic imperative behind the agreement, especially in light of regulations like the United States Inflation Reduction Act, which seeks to promote the use of domestically sourced critical minerals in the EV industry.
ERG’s commitment to ethical and responsible mining practices is echoed by its CEO, Benedikt Sobotka, who highlighted the importance of supplying ethically produced cobalt hydroxide to support North America’s EV battery supply chain expansion.
The significance of this partnership extends beyond the immediate supply of cobalt. It represents a concerted effort to build a more resilient and sustainable battery supply chain in North America. By ensuring access to ethically sourced and environmentally responsible materials, Electra and ERG are laying the groundwork for a future where electric vehicles are powered by materials that not only enhance performance but also adhere to the highest standards of sustainability and ethical production.
About Electra Battery Materials and About Eurasian Resources Group sections provide further insight into the companies’ operations, emphasizing their roles in the global battery materials market and their commitment to ethical and sustainable practices. This agreement is not just a business transaction; it’s a step towards a more secure, sustainable, and self-sufficient future for the electric vehicle industry in North America.
Sign up for our popular daily email to catch all the latest EV news!
