Electra Battery Materials (TSX-V:ELBM) has extended its cobalt hydroxide purchase agreement with Glencore (LON:GLEN) through December 2031, securing feedstock for its Ontario refinery commissioning and ramp-up.
The five-year extension builds on a commercial relationship announced in 2021 and secures 100% of the feedstock required for commissioning and ramp-up through 2027.
The agreement provides for approximately 10,000 tonnes of contained cobalt over five years, representing over US$500 million ($702.77 million) at current market prices. Deliveries will align with anticipated commissioning and ramp-up during 2027.
Vice President Commercial Michael Insulan says the deal serves as a ‘cornerstone’ commercial relationship as the company advances towards mechanical completion in 2027.
“With 100% of our cobalt feedstock requirements covered for commissioning and ramp-up through 2027, we have the supply required to bring the refinery into operation and advance to full production,” Insulan says.
“The extension also establishes Glencore as a significant long-term supplier through 2031, providing a strong foundation for planned operations as production increases.
“Glencore brings global scale and deep experience in cobalt supply while Electra is building the North American processing capacity needed to convert that feedstock into battery-grade cobalt sulphate.”
The facility is designed to initially produce 5,120 tonnes per annum of contained cobalt, with a crystalliser nameplate capacity of up to 6,500 tonnes per annum.
As production increases beyond initial ramp-up, Electra says it has flexibility to supplement Glencore volumes with additional sources, and is advancing opportunities for 2028 and beyond.
Electra previously signed a binding term sheet with LG Energy Solution covering approximately 60% of planned cobalt sulphate production through 2029, with an option to extend through 2032.
Electra Battery Materials is focused on helping advance North America’s critical minerals supply chain, constructing North America’s only cobalt sulphate refinery and holding a significant land package in Idaho’s cobalt belt.
Write to Paula Fabe at Mining.com.au
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