Motivated by a desire to create economic opportunities for Indigenous communities in southwestern Ontario, Three Fires Group—an Indigenous-owned economic development corporation based in Kettle Point, Ontario—approached Toronto-headquartered Electra Battery Materials with a vision to take part in the region’s growing battery industry through recycling.

That vision became a reality on Sept. 18, 2024, when the two partners announced a joint venture (JV), Aki Battery Recycling. Under the JV, lithium-ion battery scrap and waste material from various manufacturers will be shredded into black mass material, which contains critical minerals such as lithium, nickel, cobalt and graphite, at a planned pretreatment facility in southwestern Ontario, which will be able to treat around 14,000 tonnes of scrap per year. Once funding is secured and a location is chosen, the facility could begin operations in 2027.

Three Fires Group seeks to generate wealth and prosperity through economic and infrastructure projects in southwestern Ontario for the nations of the Three Fires Council—also known as the Three Fires Confederacy—which includes the Ojibwe, Odawa and Potawatomi. The Council’s treaty territory stretches from the western Waterloo region to Windsor. The group is headquartered in the Chippewas of Kettle and Stony Point First Nation.

An alternative route to participation

Reggie George, executive director of special projects and partnerships at Three Fires Group, and a member of the Kettle and Stony Point First Nation, observed that opportunities to mine critical minerals—and to participate in the broader mining industry—have been limited in the area. This is because southwestern Ontario lacks the mineral-rich geology of the province’s northern regions, like the Ring of Fire or Sudbury Basin, and primarily produces non-metallic minerals like salt and gypsum.

“That led us down the path of, okay, can we look at end-of-life solutions, and [eventually] that led us to Electra.” George added that turning to battery recycling fits with the group’s vision of “First Nations as keepers of the land.”

“The Three Fires group is guided by a strong vision and core values that emphasize environmental stewardship, community empowerment, cultural preservation, collaboration and innovation,” George said. He added that the group’s commitment to environmental stewardship is reflected in its involvement in this recycling project, which promotes responsible disposal and recycling of batteries, reducing pollution and conserving resources.

“The partnership allows First Nations communities to have a stake in the critical minerals and battery supply chain, which can lead to economic empowerment,” he said. “The communities can benefit from job creation, skill development and disbursements from the partnership. This can help improve the overall standard of living. Additionally, by having a voice in the mining industry, First Nations communities can influence policies and decisions that affect their land and resources. This can lead to greater social and political empowerment.”

He added that, by integrating traditional knowledge and practices, this project also honours the cultural heritage of the community.

He observed that the JV works out well not only because it enables Three Fires and Electra to recycle unused resources back into the supply chain—reducing pressure on the mining industry—but also because it aligns with the rapidly growing demand for critical minerals needed for energy storage and other applications.

Beyond its economic and environmental benefits, George views the JV as part of a broader cultural and industry shift—one that increasingly values Indigenous participation and recognizes the importance of Indigenous rights in shaping the future of resource development.

“Mining is getting more and more progressive as an industry and respecting native title rights—I shouldn’t say across the board—but the [industry is] getting better,” said George. “If you look at a lot of the impact benefit agreements, particularly up north, like around the Ring of Fire, a lot of negotiations are going on around there.”

When it comes to advancing economic reconciliation in the mining industry, George said that the industry “should invest in community development, contributing to infrastructure, education, health care and other essential services, leading to long-term benefits and improved living conditions. Collaboration and partnership are key, fostering trust and open communication to prioritize the interests and needs of First Nations.”

“Three Fires Group envisions a mining industry that actively supports economic reconciliation by addressing historical injustices and creating equitable opportunities for First Nations communities,” he added. “They advocate for inclusive economic opportunities, fair compensation and benefits, ensuring that community members have access to jobs, training and business opportunities within the industry.” George stated that “respect for land and resources is paramount, with an emphasis on sustainable practices that honour the cultural heritage of First Nations.”

George views Three Fires’ location in southwestern Ontario as a key strategic position within the electric vehicle (EV) supply chain due to several upcoming battery and automotive plants planned for construction in the area, including plants from Stellantis and Volkswagen.

“[Three Fires’] location in southwestern Ontario has kind of put us in a very interesting spot,” he said. “There’s all these gigafactories that they’re looking to open, and it’s right in the middle of our treaty territory. Then on top of that, we’ve got some pretty major landfills within proximity to some of our First Nations as well.”

Three Fires holds a 51 per cent stake in the JV, while Electra owns the remaining 49 per cent. Three Fires will lead capital resourcing efforts and oversee the identification and selection of the future facility’s location. Additionally, Three Fires will support Electra in managing the facility once it becomes operational.

George said that a few potential sites in southwestern Ontario are currently under consideration for the recycling project, though he was unable to share specific details at this stage. Three Fires hopes to settle on a location for the plant and to begin collecting batteries from older EVs to recycle later this year.

He noted that one of the advantages that comes with this type of recycling project is that it requires only a few acres of land and offers the flexibility to repurpose brownfield sites.

A circularity-driven venture

Electra underscored that, even before a lithium-ion battery is placed in an EV, significant waste is generated in each step of the manufacturing process. This manufacturing waste can be shredded into black mass, which is then hydrometallurgically treated in order to extract and isolate valuable battery materials including nickel, cobalt, lithium, manganese and graphite. These materials can then be reinserted into the lithium-ion battery supply chain at cathode and anode production facilities before being combined into new cells.

The recovered black mass would be processed using Electra’s proprietary recycling technology at the company’s hydrometallurgical facility in Temiskaming Shores, Ontario, where the company is working to complete construction of North America’s first cobalt sulfate refinery. The processed black mass would produce a nickel-cobalt mixed hydroxide precipitate (MHP), lithium carbonate, as well as manganese and graphite products. These products could then be sold as-is, or Electra could further separate the MHP and put the cobalt product through its cobalt sulfate refinery to turn it back into battery-grade cobalt sulfate and return it to the battery supply chain.

Once fully commissioned, Electra’s cobalt sulfate refinery is expected to produce around 6,500 tonnes of battery-grade cobalt per year, representing up to five per cent of the total global market share for cobalt sulfate. 

“Rather than buying black mass, it allows us to take battery scrap [from cell manufacturers], do the shredding [with Aki] and then send that to our cobalt refinery complex, and you could then return that material back to the [cell manufacturing] battery plant, so you create circularity,” said Trent Mell, CEO of Electra Battery Materials. “The way we envision the [recycling] plant, we don’t want to be collecting old laptops, cellphones and cars from all over the country. The idea is to set up a plant so that you can partner with known battery manufacturers, and then the beauty of that for Electra further downstream, is that you get a very consistent source of feed into your refinery, day in and day out.”

According to Electra, recovering critical minerals through an advanced battery shredding process will help reduce the EV supply chain’s carbon footprint and decrease reliance on foreign sources for these essential materials.

Mell noted that when George approached Electra to share Three Fires’ vision of Indigenous participation in southwestern Ontario’s battery supply chain, “there was an instant chemistry. From that call,” he said, “we landed on a JV whereby we would work with Three Fires to make the black mass through this pretreatment facility to then supply our cobalt sulfate refinery. It’s been a really good relationship thus far.”

Mell considers this JV to be unique as it opens the door for First Nations communities located in southwestern Ontario that are not already engaged in the mining industry to “now participate in mineral production, through recycling.”

He acknowledged that while Electra and Three Fires still have work ahead, he hopes the success of this JV will serve as a model for how mining companies can partner with First Nations to participate in recycling projects such as this one.

With significant investment flowing into southwestern Ontario’s battery manufacturing industry, the JV is well placed to support the region’s shift towards more circular supply chains. As Mell explained, the biggest benefit of the JV, especially for Electra, is its ability to close the loop—recycling battery scrap from nearby manufacturers and feeding it directly into Electra’s cobalt refinery. It is also a way to engage with Indigenous communities.

“[Electra] is trying to enable meaningful economic participation for Indigenous communities in economic activity that takes place on their land,” Mell said. “We’re not so much the proponent in terms of a land impact, we’re a solution that allows us to bridge a project proponent, in this case, a [recycling facility] and Indigenous [communities].”