KEY POINTS
- Glencore will supply Electra with about 10,000 tonnes of contained cobalt worth roughly $500 million through 2031.
- Electra’s Ontario refinery is targeting mechanical completion in 2027 and commercial production in the fourth quarter of the year.
- LG Energy Solution has agreed to take 60% of planned cobalt sulphate production through 2029, with an option to extend the deal to 2032.
Electra Battery Materials has secured a long-term cobalt hydroxide supply agreement with global mining company Glencore, providing a major boost to the development and planned commissioning of its cobalt sulphate refinery in Ontario, Canada.
The agreement, signed on August 20, 2026, will see Glencore supply Electra with about 10,000 tonnes of contained cobalt over five years, covering the refinery’s commissioning, ramp-up and initial operating period through December 31, 2031.
The deal strengthens Electra’s efforts to establish a North American supply chain for battery-grade cobalt sulphate, a key material used in the production of lithium-ion batteries for electric vehicles and energy-storage systems.
Under the latest agreement, Glencore will provide 100% of the cobalt hydroxide feedstock required by Electra for the commissioning and ramp-up of its Ontario refinery, as well as for operations through 2031.
The cobalt to be supplied is valued at approximately $500 million based on current market prices.
The agreement builds on a commercial relationship between Electra and Glencore that began in 2021 and links Glencore’s global cobalt production and supply network with Electra’s planned North American refining capacity.
Electra said the arrangement would strengthen the connection between upstream cobalt production and the manufacture of battery-grade cobalt sulphate within North America.
Refinery Targets 2027 Production
Electra is continuing construction and early development work at its cobalt sulphate refinery in Ontario, with mechanical completion targeted for 2027.
The facility is designed to initially produce about 5,120 tonnes of contained cobalt annually. Its crystalliser has a nameplate capacity of up to 6,500 tonnes a year, giving the company room to increase output as operations expand.
Commercial production is targeted for the fourth quarter of 2027.
The company expects the Glencore agreement to provide sufficient feedstock for the critical commissioning and ramp-up stages of the project, reducing one of the key supply risks associated with bringing a new refinery into production.
Although Glencore will initially provide the refinery’s full feedstock requirement, Electra said it retains the flexibility to source additional cobalt hydroxide from other suppliers as production increases.
The company is already pursuing additional supply opportunities for 2028 and beyond.
Electra said diversifying its feedstock sources would allow it to increase production after the initial ramp-up period while strengthening the resilience of its supply chain.
The strategy could also provide the refinery with greater flexibility as market conditions and cobalt demand evolve.
