The Department of Defense (DoD) has announced a $20 million award to Electra Battery Materials Corporation (Electra) through the Defense Production Act Investments (DPAI) office. This funding is aimed at completing the construction of an industrial-scale hydrometallurgical plant and establishing cobalt sulfate production at Electra’s facility in Temiskaming Shores, Ontario, Canada.
The award, funded by the Ukraine Supplemental Appropriations Act of 2022, aligns with the 2024 National Defense Industrial Strategy’s goal of expanding domestic production of critical minerals. The Government of Canada had previously awarded Electra CAN $5 million (approximately USD $3.6 million) to advance a battery materials recycling project at the same facility.
Dr. Laura Taylor-Kale, Assistant Secretary of Defense for Industrial Base Policy (ASD(IBP)), emphasized the strategic importance of this award: “This award will develop North American production of a key precursor material for large capacity batteries, helping to create a more robust industrial base capable of meeting growing demand across both the defense and commercial sectors.”
Canadian Minister of Energy and Natural Resources, the Honourable Jonathan Wilkinson, highlighted the significance of the project for both Canada and the United States. He pointed out that it advances secure critical minerals value chains, creates jobs, and bolsters economic and security interests through collaboration under initiatives like the Energy Transformation Task Force and the Joint Action Plan on Critical Minerals Collaboration.
The Defense Production Act funds will support the completion of the Ontario Cobalt Refinery, which will be the first of its kind in North America to produce cobalt sulfate, a crucial component in lithium-ion batteries used in various Department of Defense systems. The project is expected to enhance the North American electric vehicle (EV) supply chain and contribute to the sustainable production of critical battery materials.
This award is part of a broader initiative by the DPAI program, which has provided 35 awards totaling $445 million since the beginning of fiscal year 2024. It is also the third award made to Canadian companies under the DPA, underscoring the strategic partnership between the U.S. and Canada in strengthening the critical minerals supply chain. The DPAI program is overseen by the ASD(IBP)’s Manufacturing Capability Expansion and Investment Prioritization (MCEIP) office, under the Deputy Assistant Secretary of Defense for Industrial Base Resilience.–News Desk