Electra Battery and Glencore Renew Cobalt Feedstock Supply Agreement Through 2031

en.Wedoany.com Reported - On August 20, Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V: ELBM) announced the extension of its cobalt hydroxide feedstock purchase agreement with Glencore AG through December 31, 2031. The extended agreement secures all feedstock supply required for the commissioning and ramp-up of Electra's cobalt sulfate refinery in Ontario in 2027.

Under the terms of the agreement, Glencore will supply approximately 10,000 tonnes of contained cobalt in hydroxide form over five years, valued at over $500 million based on current market prices. Delivery timing offers flexibility to align with the commissioning and ramp-up schedule of Electra's refinery in 2027. The agreement also establishes Glencore as a key long-term feedstock supplier to the refinery through 2031.

Michael Insulan, Electra's Vice President of Commercial, stated that the agreement is a cornerstone commercial relationship in the advancement of the refinery. Cobalt feedstock required for the 2027 commissioning and ramp-up is now 100% secured, providing supply assurance for the refinery's start-up and full operations.

Electra's refinery is the only battery-grade cobalt sulfate production facility under construction in North America, with an initial design capacity of 5,120 tonnes of contained cobalt per year and a crystallizer nameplate capacity of up to 6,500 tonnes annually. In March 2026, Electra signed a binding term sheet with LG Energy Solution, under which approximately 60% of the refinery's cobalt sulfate output will be supplied to LGES through 2029, with an option to extend through 2032. Electra stated that it will continue to diversify its feedstock sources beyond 2028.