Electra Battery Materials has signed a term sheet with WMC Group AG for a proposed five-year working-capital and commercial partnership supporting its cobalt sulfate refinery in Temiskaming Shores, Ontario. The arrangement would finance cobalt feedstock purchases and sales of battery-grade cobalt as Electra moves from construction and commissioning toward operations.
WMC would provide logistics management, cobalt-market expertise, marketing support and access to its global commercial network. It would also finance and manage volumes up to the refinery’s nameplate capacity, buy the resulting cobalt sulfate and act as the exclusive marketing agent for that production. WMC has committed to invest in Electra once definitive agreements are executed.
The refinery is being advanced as North America’s first facility dedicated to producing battery-grade cobalt sulfate. Electra launched an early works program last year to prepare for the restart of full-scale construction, with strategic funding from the U.S. The company has also secured cobalt feedstock for commissioning and ramp-up and has an updated long-term supply arrangement with LG Energy Solution covering a portion of planned production.
The term sheet is non-binding except for provisions including confidentiality, exclusivity, costs, assignment, governing law and jurisdiction. The parties still must complete due diligence, negotiate and sign definitive agreements, obtain required regulatory and creditor approvals, and satisfy other customary conditions.