Electra Battery Materials Corporation (NASDAQ: ELBM) has finalized a C$17.5 million funding agreement with Invest Ontario, an agency of the Government of Ontario, to support construction of its cobalt sulfate refinery in Temiskaming Shores, Ontario, according to a company statement.

Construction is underway, with structural steel erection, concrete work, equipment installation and piping in progress. The company has targeted select commissioning activities to begin in the fourth quarter of 2026, mechanical completion in the second quarter of 2027, full commissioning and production ramp-up in the third quarter of 2027, and commercial production in the fourth quarter of 2027.

Electra has also extended a cobalt feedstock supply agreement with Glencore, covering approximately 10,000 tonnes of contained cobalt over five years through 2031. The company says the agreement covers 100% of the feedstock required for commissioning and ramp-up through 2027.

Once operational, the facility is designed to initially produce 5,120 tonnes of contained cobalt annually, with crystallizer nameplate capacity of up to 6,500 tonnes per year.

Electra also announced it will issue 500,000 incentive stock options under its Long-Term Incentive Plan, adjusted for the closing price as of August 25, 2026. The options will vest in three equal tranches on the first, second and third anniversaries of the grant date. The grant is subject to approval by the TSX Venture Exchange.

"We are focused on completing North America's first cobalt sulfate refinery and creating the long term employment and economic activities that come with it," said Trent Mell, CEO of Electra.

Ontario Minister of Economic Development Vic Fedeli said the refinery "will onshore a key capability needed to support North America's manufacturing sectors."