08:23 AM EDT, 04/02/2024 (MT Newswires) -- Electra Battery Materials Corp. ( ELBM ) said Tuesday that it signed a binding letter of intent for long term cobalt supply from Eurasian Resources Group S.A.R.L. (ERG), a diversified natural resources group headquartered in Luxembourg.

Under the terms, ERG will deliver 3,000 tonnes per annum of cobalt to Electra's cobalt sulfate refinery north of Toronto.

With the agreement, effective April 1, 2024, Electra said it has secured enough cobalt hydroxide feed material to fully meet the refinery's annual capacity. Once fully commissioned, the refinery can produce sufficient cobalt for up to 1.5 million electric vehicles per year.

"Partnering with a recognized leader in sustainable mining practices is essential for Electra to produce secure, clean, and ethically sourced battery materials," Electra CEO Trent Mell said.

The cobalt will be sourced from ERG's Metalkol operation in the Democratic Republic of the Congo.

Electra said it is also considering developing a second cobalt refinery in Becancour, Quebec.

Electra gained 3.2% yesterday in Canada.