A company with a plant in the northern Ontario city of Temiskaming Shores, has closed a lucrative deal for funding from the U.S. military. .

Electra Battery Materials Corporation is a processor of battery materials, and it announced in a news release Monday that it has been awarded $20 million US by the U.S. Department of Defense.

The company says 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. It says at present, more than 80 per cent of battery grade cobalt is produced in China.

"Electra is committed to strengthening the resiliency of the North American battery supply chain," said Electra CEO, Trent Mell, in a news release.

"We are grateful to the U.S. Department of Defense for its support. On issues of national security, there are no borders between Canada and the United States. We are proud to partner with the U.S. Government to build a strong North American supply chain for critical minerals." said Mell.

For the U.S. Department of Defense, Laura Taylor-Kale, the Assistant Secretary of Defense for Industrial Base Policy, called this a key alliance.

"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 defence and commercial sectors," she said in a news release.

The company says its $250-million refinery project in Temiskaming Shores includes a planned expansion of an existing plant, and all permits have been obtained, with much of the needed equipment on site, and it says construction is well underway. In addition to cobalt refining, Electra says it plans to produce other battery materials that will strengthen the resiliency of the North American supply chain.