Electra Battery Materials Corporation to supply battery grade cobalt to LG Energy Solution
Investments in the automotive and critical minerals sectors continue to grow in Ontario.
Electra Battery Materials Corporation announced Friday that they would be signing a three-year agreement to supply battery grade cobalt to LG Energy Solution.
LGES is a leading global manufacturer of lithium-ion batteries for electric vehicles.
Speaking on AM800's The Shift with Patty Handysides, Victor Fedeli, Minister of Economic Development, Job Creation and Trade, says he just came back from a trade mission to Japan and South Korea to forge new relationships and strengthen existing ones in the automotive sector.
He says the agreement will show Electra supplying a very large amount of cobalt over the next few years.
"We're talking 7,000 tonnes of battery grade cobalt from 2023 to 2025, so it's a big deal. It's the biggest deal that Electra's made."
He says the Electra plant is the only cobalt sulfate refinery in North America.
"The province of Ontario has made modest investments in that plant, it's been around for a long time in Northern Ontario. And luckily they kept their refinery alive and well and now it is the only permanent cobalt sulfate refinery, and that's very exciting news for Ontario."
Fedeli says why investors overseas continue to invest in Ontario.
"They know that Ontario is safe, and that has turned into being a very important factor for us here in Ontario. They view it as a safe place, but they also view our economy and our government to be stable in this really turmoil of a world right now. They look to Ontario as a sea of tranquility."
The cobalt material will be supplied from the only cobalt sulfate refinery in North America, located north of Toronto, Ontario.
The cobalt provided under the term of the contract with LGES will be enough to supply up to 1.5 million full electric vehicles.