Electra Battery Partners with ERG for DRC’s Cobalt Supply
In the race for the Democratic Republic of Congo’s (DRC) rich mineral resources, valued at a staggering $24 trillion, Electra Battery Materials has taken a significant stride. Recently, the company announced a pivotal agreement with Eurasian Resources Group (ERG) for a steady supply of Congolese cobalt.
Under this arrangement, ERG, based in the DRC, will deliver 3,000 tonnes of cobalt hydroxide annually from its Metalkol operation to Electra. This cobalt will be channeled to a refinery located near Toronto, starting in 2026.
This strategic partnership aligns with the United States’ mineral security strategy, particularly in meeting the burgeoning demand for cobalt, crucial for electric vehicle (EV) batteries.
Moreover, the agreement complies with the American Inflation Reduction Act (IRA), providing further impetus to the growing adoption of EVs through subsidies.
Electra anticipates that its Canadian refinery will have the capacity to power up to 1.5 million vehicles annually, solidifying its position as a leading cobalt sulfate refinery in North America.
Trent Mell, CEO of Electra, expressed immense pride in the partnership, emphasizing ERG’s esteemed reputation as one of the premier cobalt hydroxide suppliers globally.
Meanwhile, cobalt production in the DRC is witnessing a notable surge. Data from the Central Bank of Congo (BCC) indicates a substantial output of 139,838 tonnes during the 2023 fiscal year.
This partnership not only underscores the importance of strategic alliances in securing vital resources but also reflects the growing significance of sustainable energy solutions in the global market.
