DOD awards $20M to Electra to support critical mineral production in North America

The U.S. Department of Defense (DOD) on Monday announced a $20 million award to Electra Battery Materials Corp., that will help expand domestic production of critical minerals.

“This award will develop North American production of a key precursor material for large capacity batteries, helping to create a more robust industrial base capable of meeting growing demand across both the defense and commercial sectors,” said Laura Taylor-Kale, DOD Assistant Secretary of Defense for Industrial Base Policy.

Electra, a processor of low-carbon, ethically sourced battery materials, will use the funding to complete an industrial-scale hydrometallurgical plant and establish production of cobalt sulfate at the company’s facility in Temiskaming Shores, Ontario, Canada.

By helping to complete construction of the Ontario Cobalt Refinery, the funds will enable Electra to establish the first North American refinery for the production of cobalt sulfate, an active material in lithium-ion batteries.

“Electra is committed to strengthening the resiliency of the North American battery supply chain,” Electra CEO Trent Mell said Monday. “On issues of national security, there are no borders between Canada and the United States. We are proud to partner with the U.S. Government to build a strong North American supply chain for critical minerals.”

In June, Canada announced its own $3.6 million (USD) award to Electra to advance the next phase of a battery materials recycling project started at the same refinery facility, according to DOD.

“From mining responsibly sourced critical minerals to processing them here in North America, to building batteries for electric vehicles and other key technologies, and eventually to recycling them, there is enormous opportunity for both Canada and the United States from both an economic and a security perspective,” Jonathan Wilkinson, Canada’s Minister of Energy and Natural Resources, said yesterday.

“Through our continued work with the United States, driven by the Energy Transformation Task Force and the Joint Action Plan on Critical Minerals Collaboration, and other allies, we are developing secure critical minerals value chains that will create good jobs in places like Temiskaming, Ontario and beyond, and will power prosperous economies and a future that works for everyone,” said Wilkinson.

Once completed, the Ontario Refinery project will benefit the growing North American electric vehicle supply chain, according to DOD, which noted that the award is the latest of 35 awards made by the DPAI program across multiple areas totaling $445 million since the beginning of fiscal year 2024.

In turn, the DOD said this will lead to a sustainable domestic processing facility capable of producing commercial-scale levels of a critical precursor material for large capacity batteries, which are used in many DOD systems.

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