DOD investing $20M to bolster large capacity battery supply chain

The Defense Department awarded $20 million to Electra Battery Materials Corp. to help expand domestic production of cobalt sulfate, a key material for large capacity batteries, according to an announcement today.

The award, made via the Defense Production Act Investments (DPAI) office, will allow the company to complete an industrial scale hydrometallurgical plant and establish cobalt sulfate production at its Ontario, Canada facility.

“This award will develop North American production of a key precursor material for large capacity batteries, helping to create a more robust industrial base capable of meeting growing demand across both the defense and commercial sectors,” Laura Taylor-Kale, assistant secretary of defense for industrial base policy, said in a DOD press release today.

By establishing the mineral’s production at the Canada facility, the award also supports the 2024 National Defense Industrial Strategy’s goal to expand domestic production of critical minerals, according to the press release.

With the investment, using funds from the 2022 Ukraine Supplemental Appropriations Act, Electra’s facility will be the first North American refinery aimed at producing cobalt sulfate, according to DOD.

“This will lead to a sustainable domestic processing facility capable of producing commercial-scale levels of a critical precursor material for large capacity batteries, which are used in many DOD systems,” DOD said.

It’s the most recent of 35 awards the DPAI program has made since the beginning of fiscal year 2024, totaling $445 million, and the third such award using DPA funds granted to a Canadian company, according to DOD.