TORONTO: London-based metals trader Stratton Metal Resources Ltd will sell cobalt sulphate produced by First Cobalt Corp’s Canadian refinery under a five-year deal, a source with direct knowledge of the arrangement said on Sunday.

Contract terms including price and quantity were not immediately known. Under the deal First Cobalt will have the option to sell up to 100% of its annual cobalt sulfate to Stratton once its refinery in Ontario province is in production, the source said. Demand for cobalt, a key ingredient for the rechargeable lithium-ion batteries used to power electric vehicles, is expected to surge as governments and consumers clamp down on fossil fuels such as diesel and gasoline to cut greenhouse gas emissions.