Electra Battery Materials Corporation (Electra), a listed Canadian battery material recycler, has expanded its battery grade cobalt supply agreement initially announced in September 2022 with LG Energy Solution, a leading global manufacturer of lithium-ion batteries.

Under the updated terms, Electra will supply LG Energy Solution with 3,000 tons of cobalt contained in a cobalt sulfate product in 2025 and a further 4,000 tons in each of the following years through 2029 for a total of 19,000 tons under an agreed pricing mechanism. The company will supply from its cobalt sulfate refinery in North America, located north of Toronto, Ontario.

Analyst QuickTake: In September 2022, Electra and LG Energy Solution initially partnered for the supply of 7,000 tons of battery-grade cobalt from 2023 to 2025. Apart from this, Electra has also partnered with companies including Three Fires Group (May 2023) and Glencore (April 2022) to supply nickel and cobalt products.