Electra and Eurasian Resources Group Sign Cobalt Supply Agreement

Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V: ELBM) (“Electra”, “Company”) and Eurasian Resources Group S.A.R.L. (“ERG”), a leading diversified natural resources group headquartered in Luxembourg, announced today that they have signed a binding letter of intent for long-term supply of ERG’s cobalt hydroxide to North America’s first battery grade cobalt sulfate refinery. The agreement, effective April 1, 2024, supports efforts to onshore the battery supply chain and reduce reliance on foreign refiners.

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Trent Mell & Benedikt Sobotka in February 2024 (Photo: Business Wire)

• Starting from 2026, under the three-year supply agreement, ERG will deliver 3,000 tonnes per annum of IRA-compliant cobalt to Electra’s refinery north of Toronto
• With this agreement, Electra has sufficient cobalt hydroxide feed material to meet all of the refinery’s annual capacity
• Cobalt will come from ERG’s Metalkol operation in the Democratic Republic of the Congo, one of the largest cobalt hydroxide facilities globally
• Further collaboration is under consideration for Electra’s plans to build a second cobalt refinery in Bécancour, Quebec

Under the United States Inflation Reduction Act (IRA), electric vehicles containing critical minerals sourced from Foreign Entities of Concern will not qualify for the US$7,500 electric vehicle credit starting in 2025. These and other incentives are intended to support the strategic imperative of establishing a domestic EV battery supply chain in the U.S. and Canada.

“Partnering with a recognized leader in sustainable mining practices is essential for Electra to produce secure, clean, and ethically sourced battery materials,” said Electra’s CEO, Trent Mell. “Electra’s Canadian refinery is uniquely positioned as North America’s first cobalt sulfate refinery, with IRA-compliant feedstock to support growing EV demand. We are very proud to have ERG, one of the best cobalt hydroxide suppliers in the world, as a partner.”

“ERG is a responsible global player who supports the green energy transition. Electra was one of the first companies to achieve localisation of the upstream supply chain, supporting the industry’s move towards an entirely integrated battery supply model and putting battery metals at the core of industry's related efforts,” said Benedikt Sobotka, ERG’s CEO and Co-Chair of the Global Battery Alliance. “Supplying ethically produced cobalt hydroxide to Electra meets our values and supports North America’s cobalt demand, as well as the region’s rapidly expanding battery supply chain.”