Electra Battery Materials Corporation, known simply as “Electra,” offers an update on its unique battery-grade cobalt sulfate refinery’s construction in North America, tailored to the electric vehicle (EV) battery supply chain’s onshoring needs.
Why It Matters
Electra’s establishment in North America aims to fortify the local EV battery supply chain, especially as global supply disruptions have made it imperative for regions to be self-reliant. Their collaboration with stakeholders like LG Energy Solution emphasizes the significance and potential reach of this project.
Key Points
- Electra has recently secured US$5 million in vital equipment for its solvent extraction plant and crystallizer circuit.
- There were delays due to global supply chain disruptions; equipment installation will progress as capital funding is secured.
- Electra’s hydrometallurgical complex, situated near Toronto, has an estimated replacement value of US$200 million.
- Approximately US$55.7 to $62 million more is needed to conclude the construction.
- The refinery, once operational, could generate enough cobalt for nearly 1.5 million EVs yearly.
- An expanded agreement with LG Energy Solution is in place to supply 19,000 tonnes of cobalt from 2025, which is 80% of Electra’s projected annual production.
Bottom Line
Electra is not just establishing a refinery; it is poised to become a pivotal player in North America’s EV supply chain. With strategic partnerships in the pipeline, including their joint venture with Three Fires Group on battery waste recycling and discussions regarding a new shredding facility in Ontario, Electra’s footprint could soon be far-reaching.
Moreover, while challenges remain, such as securing additional funding, Electra’s leadership is actively engaging with government and industry stakeholders for solutions. Trent Mell, Electra’s CEO, expressed optimism, “We remain actively engaged with government stakeholders to secure US$10.9 million of previously committed funding. We are also encouraged by recent developments on a larger funding solution to complete construction and commissioning of the refinery.”
It’s crucial to note that Electra’s refinery complex, pending its full completion, could be North America’s first to integrate the production of vital minerals for EV batteries and process black mass material. The latter helps recover high-value elements found in recycled lithium-ion batteries.
The upcoming completion timeline of the refinery project largely hinges on acquiring the necessary capital. As of September 30, 2023, Electra had a cash balance of C$15.1 million and is set to disclose its Q3 2023 financial results by November 15, 2023.
