Electra–LG Energy cobalt deal: project schedule and offtake lens for mine planners
Reviewed by Joe Ashwell
First reported on MINING.com
30 Second Briefing
Electra Battery Materials has signed a new term sheet with LG Energy Solution to supply 60% of cobalt sulphate output from its Temiskaming Shores refinery in Ontario through 2029, with an option to extend three years. The $250 million plant, 500 km north of Toronto, is targeting early commissioning in Q4 2026 and a one-year ramp-up to full capacity of 6,500 tonnes per year of battery-grade cobalt sulphate, backed by a newly approved $73 million construction budget. Once operating, it is expected to be North America’s first cobalt refinery and one of only two major facilities outside China, which currently supplies about 90% of global cobalt sulphate.
Technical Brief
- Construction was halted in August 2023 due to cost overruns and supply chain disruptions.
- Site works and installation activities restarted in November 2025 once completion funding was secured.
- The updated LG Energy Solution term sheet replaces a 2022 three‑year deal and a 2023 five‑year extension.
- LG’s offtake covers 60% of output, effectively pre‑selling a majority of refinery nameplate capacity.
- Market context: China currently supplies about 90% of global cobalt sulphate, leaving only two major plants elsewhere.
- Electra’s share price rose 7.5% to C$1.00 on announcement, implying a market capitalisation just over C$100 million.
- Being one of only two large non‑Chinese cobalt sulphate refineries positions the plant as a strategic Western feed source.
Our Take
Locking in an offtake for 60% of cobalt sulfate output through 2029 effectively underwrites much of Electra’s C$250 million refinery completion cost, which is unusually high leverage to a single contract compared with other cobalt items in our database.
With roughly 90% of global cobalt sulfate still coming from China, a North American refinery in Temiskaming Shores tied to LG Energy Solution gives OEMs and cell makers a concrete alternative for IRA- and EU-compliant supply chains, likely improving Electra’s bargaining power on future financing rounds.
Among the 42 cobalt- and cobalt sulfate-tagged pieces in our coverage, most new capacity is still at study or early construction stage, so Electra’s Q4 2026 commissioning target positions Ontario as one of the earlier Western conversion hubs to reach commercial ramp-up.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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