By Glenn Johnson
Electra Battery Materials Corp. said Thursday it has signed a three-year agreement to supply battery-grade cobalt to LG Energy Solution Ltd., which makes lithium-ion batteries for electric vehicles.
Electra has agreed to supply the company with 7,000 metric tons of the cobalt beginning in 2023 from the only cobalt-sulfate refinery in North America, located north of Toronto. The refinery is in the late stages of commissioning and is expected to begin operations in the spring of 2023, Electra said.
In the first year of the agreement, Electra will supply 1,000 tons. The company will supply 3,000 tons of cobalt in 2024 and 2025. Financial terms of the supply agreement weren't disclosed.
Electra and LG Energy Solution have also agreed to explore other opportunities across North America's electric vehicle supply chain, such as securing sustainable sources of raw materials.
In August, Electra signed a non-binding memorandum of understanding with Fuse Cobalt Inc. to get raw cobalt. At the time, the companies said Electra could commit to purchase up to 2,000 tons of cobalt annually from Fuse, if they come to a final agreement.
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(END) Dow Jones Newswires