As Canada barrels toward an election, critical minerals are becoming critical votes — and Electra Battery Materials (ELBM) is now squarely in the national spotlight.
The company, which is building North America’s first and only cobalt sulfate refinery, has been quietly turning heads with a flurry of high-profile funding announcements. And with a market cap under C$35M, Electra could be the biggest undervalued energy transition story on the TSX.
C$20M on the Table — LOI Signed, Clock Ticking
On January 27, the Canadian government signed a C$20 million non-binding Letter of Intent for a strategic investment — a prepayment facility that would go directly toward finishing its cobalt refinery in Temiskaming Shores, Ontario.
That news was made public just days ago, and it’s already drawing attention across the industry.
Why it matters: This isn’t speculative. The project is almost fully funded — and almost every dollar is non-dilutive.
In total, Electra has now locked in US$54M in non-dilutive funding, including:
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US$34M from the Canadian government (part binding contract, part LOI)
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US$20M from the U.S. Department of Defense (Aug 2024)
The refinery’s estimated completion cost is US$60M. That means Electra is essentially at the finish line — and it’s doing it without issuing new shares.
The Election Angle: Why the Government Can’t Walk Away
With an election looming, this project has become more than industrial policy — it’s political capital. On March 22nd, 2025, Ontario Premier Doug Ford emerged from a high-level meeting with the current PM Mark Carney and provincial leaders, declaring:
“Today, Prime Minister Mark Carney and Canada’s premiers agreed on the need to cut red tape and streamline approvals to get big things built faster, including unleashing the enormous economic potential of the Ring of Fire. The prime minister answered Ontario’s long-standing call and agreed to end needless duplication by recognizing provincial environmental assessment processes for nation-building projects. This will let us get shovels in the ground years sooner. Business as usual is over. Let’s get building.”
Backing away from a high-profile EV supply chain project in Ontario — especially one that’s already received U.S. defense money — would be political suicide. This is a “shovels-in-the-ground” moment. And Electra is ready to go.
Why Investors Should Pay Attention Now
✅ 90% of global cobalt sulfate comes from China. Electra’s refinery will be one of the only options in North America — and free from “foreign entity of concern” involvement.
✅ 6,500 tonnes/year capacity = up to 1 million EVs worth of cobalt annually.
✅ Tiny market cap (~C$26M) with tens of millions in strategic backing.
✅ Political tailwinds with bipartisan support and international funding.
This is more than a mining story — it’s about securing the EV future of North America.
Daily Miner 