As Electra Battery Materials moves into the systems testing phase of its Temiskaming cobalt refinery, the Toronto company has signed up with a global commodities trader to be a strategic financing and <a href="https://bitcomme.com/influencer-marketing-benchmark-report-2026/” title=”Influencer Marketing Benchmark Report 2026″>marketing partner.
Electra announced Oct. 13 that it has signed a non-binding term sheet for five years with WMC Group AG to handle all the financing for cobalt purchases and manage the sale and logistics of the refined cobalt produced from the refinery as it moves into production in 2027. There will be negotiations and due diligence done to reach definitive agreements.
Electra promotes itself as the only soon-to-be cobalt sulfate refinery in North America. The refinery is located south of Temiskaming Shores. Electra acquired the shuttered Yukon refinery in 2017 and committed $100 million to refurbish the facility and physically expand its footprint.
South Korea’s LG Energy Solution has already signed an offtake agreement with Electra to grab 60 per cent of the refinery’s cobalt production. WMC will help sell the remaining 40 per cent.
“WMC will help us market and sell the remaining production through its global customer network,” emailed Heather Smiles, Electra’s vice-president of external affairs and corporate development, to Northern Ontario Business, “but that’s only one part of the partnership.
“The other important piece is the financing of the purchase of raw materials (cobalt feedstock) that we’ll process at our refinery. Rather than Electra having to fund those purchases entirely on its own, WMC will help finance and manage that process.”
Electra’s cobalt hydroxide feed will be sourced primarily from Glencore’s copper and cobalt mines in the Democratic Republic of Congo. Glencore will supply about 10,000 tonnes of cobalt to Electra over a five-year extension running through Dec. 31, 2031.
“So, in simple terms, WMC will help us buy the raw materials, manage the logistics and find customers for the finished product,” said Smiles.
“It’s really about putting the commercial and financial arrangements in place to support the refinery once it’s operating, rather than simply securing another buyer for our cobalt.”
Rather than pay a traditional service fee to WMC, Smiles said the compensation arrangement is built around WMC’s role in financing and trading the cobalt material.
“As a commodities trader, WMC’s business model involves earning a return through these transactions. The specific commercial terms are not something we’re disclosing at this stage.”
“As Electra gets closer to production, the relationship provides the inventory working capital and provides our commercial team with broader access to cobalt buyers around the world,” said Electra CEO Trent Mell in a statement.
“WMC markets physical commodities worldwide, combining market intelligence and longstanding customer relationships. Those capabilities complement our existing commercial relationships and can help us optimize the refinery as we ramp toward full production.”
Joe Micotto, WMC’s head of battery materials, said his firm’s expertise in battery materials can bring value to Electra as a future refiner.
“Electra is developing an important newts refining capability with our financial and logistical resources and global customer relationships gives Electra a strong route to market as it moves into production.”
