Electra Battery provides construction update on cobalt refinery project

Electra Battery Materials provided an update on the construction of its battery grade cobalt sulfate refinery, the only facility of its kind being built in North America designed to address the onshoring requirements of the electric vehicle battery supply chain. lectra has in recent weeks received $5M in long-lead, critical equipment, including pressure vessels, tanks, and structural steel, needed for completion of the Corporation’s solvent extraction plant and crystallizer circuit. The equipment, some of which had been ordered at the onset of the construction project in Q2 of 2021 and was expected for delivery by Q4 2022, had been delayed by global supply chain disruptions. Installation of the equipment delivered at site will occur as Electra secures its capital funding requirements for the refinery project. Electra’s owner’s team continues to operate the refinery to complete its black mass recycling trial. The Company’s hydrometallurgical complex near Toronto, Canada is fully permitted and has an estimated replacement value of approximately $200M. The Company estimates that an additional US$55.7 to $62M is required to complete construction. Management has been working on a largely non-dilutive funding solution with government and industry stakeholders to address the additional capital needs. Once fully commissioned, the refinery could produce sufficient cobalt for up to 1.5M EVs annually. On July 24 Electra announced that its battery grade cobalt sulfate agreement with LG Energy Solution, a leading global manufacturer of lithium-ion batteries, had been extended and expanded from initial terms. The agreement now provides for the supply of 19,000 tonnes of cobalt contained in sulfate beginning in 2025. The total will represent up to 80% of Electra’s expected annual production. “Against the backdrop of our black mass recycling trial and the continued progress of our refinery project, we are focused on addressing our capital requirements and strengthening our relationships with key stakeholders in the broader EV supply chain,” said Trent Mell, Electra’s CEO. “We remain actively engaged with government stakeholders to secure US$10.9M of previously committed funding. We are also encouraged by recent developments on a larger funding solution to complete construction and commissioning of the refinery.”