Electra inks deal with Glencore to produce battery grade cobalt for electric vehicles

TORONTO (CP) – Electra Battery Materials Corp. says it has signed a five-year cobalt tolling contract with mining giant Glencore to produce a low carbon, battery grade cobalt product for the electric vehicle market.

The Toronto-based company says it also amended its previous five-year cobalt hydroxide feed purchase agreement with Glencore.

Electra says the Canadian-made cobalt sulfate will be marketed as a premium product that is sustainably mined and refined with renewable hydroelectric power.

It says its battery-grade cobalt sulfate is expected to command a premium above normal market prices, with production slated to begin in late 2022.

Trent Mell, Electra’s chief executive officer, says the deal with the world’s largest cobalt miner is a validation of the company’s strategy.

He says partnering with Glencore will establish the company’s traceable and low carbon cobalt sulfate product as a premium brand in the electric vehicle market.