Electra and LG Energy Solution Update Multi-Year Cobalt Supply Agreement

The most recent news (March 10, 2026) confirms a binding term sheet with LG Energy Solution (LGES) for the long-term supply of battery-grade cobalt sulfate. Key terms include a firm commitment for 60% of Electra’s production through 2029, with an extension option to 2032. This follows the February 2026 announcement of a US$73 million construction budget and a definitive schedule targeting early commissioning in Q4 2026 and commercial production by Q4 2027. The refinery is designed for 5,120 tonnes per annum (tpa) of cobalt, with a pathway to 6,500 tpa.

This news is Material - Positive because it provides revenue certainty for the majority of the refinery's initial output. - De-risking: Securing a Tier-1 offtake partner like LGES is a prerequisite for project financing and validates the technical specifications of Electra's product. - Market Timing: The announcement notes a 90% increase in cobalt sulfate prices since early 2025, suggesting Electra is entering the market during a period of high demand and pricing strength. - Strategic Alignment: The agreement reinforces Electra’s role in the "onshoring" of the North American EV supply chain, a key priority for the US and Canadian governments who have provided US$48M in support. - Comparison to Projections: The timeline has shifted slightly (previously targeting 2025/2026 in older releases), but the current budget and schedule appear finalized with major equipment already on-site.

Electra is developing North America’s only battery-grade cobalt sulfate refinery in Temiskaming Shores, Ontario. The project is a brownfield expansion of an existing hydrometallurgical facility. - Flagship: Ontario Cobalt Refinery (Target: 5,120 - 6,500 tpa). - Secondary Assets: Iron Creek Cobalt-Copper project in Idaho (Exploration stage, intended as future domestic feedstock). - Circular Economy: Developing a "Black Mass" recycling circuit to recover lithium, nickel, and cobalt from spent batteries.