03:24 PM EDT, 08/19/2024 (MT Newswires) -- Electra Battery Materials Corporation ( ELBM ) , a processor of low-carbon, ethically-sourced battery materials, was at last look up 26%, but had been up nearly twice that earlier, amid news Monday it was awarded US$20 million by the U.S. Department of Defense.

A statement noted this relates to the U.S. move to expand domestic production capability and is funded through the Additional Ukraine Supplemental Appropriations Act.

Monday's statement noted the funds will support the construction and commissioning of North America's only cobalt sulfate refinery, capable of producing battery grade materials for lithium-ion batteries. More than 80% of battery grade cobalt is currently produced in China.

Electra is expanding an existing plant, "with permits in hand, construction well underway and most long lead custom equipment at site". The $250 million refinery project is located in Temiskaming Shores, Ont., and is projected to have the lowest carbon footprint in the world.

Once fully commissioned, Electra said, the facility can produce 6,500 tonnes of cobalt per year, which would support the production of over 1 million EVs annually. It noted LG Energy Solution will purchase up to 80% of capacity over the first five years and several buyers are now competing for the remaining production.

It added the cobalt feed material will be ethically-sourced from Glencore and Eurasian Resources Group mines in the DRC -- material that would otherwise be shipped to China.

In addition to cobalt refining, Electra plans to produce other battery materials that will strengthen the resiliency of the North American supply chain. In 2023, the company operated a plant-scale black mass demonstration plant at its refinery complex, recovering lithium, nickel, cobalt and other critical minerals from batteries.

The company is also contemplating a second cobalt sulfate facility in Becancour, Que. and a strategically located North American nickel sulfate plant.

ELBM was at last look up 32% at $0.66, having touched a day high $0.79.

Price: 0.71, Change: +0.21, Percent Change: +42.00