- Marks important milestone for North
America’s EV battery supply chain -
Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V:
ELBM) (“Electra”, or the “Company”) announced
today that it has successfully completed the first plant-scale
recycling of black mass material in North America and recovered
critical metals, including nickel, cobalt, and manganese, needed
for the electric vehicle (EV) battery supply chain using its
proprietary hydrometallurgical process at its refinery north of
Toronto.
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Black mass material being processed at
Electra’s refinery complex north of Toronto (Photo: Business
Wire)
“Initial results from our black mass trial are extremely
encouraging,” said Trent Mell, CEO of Electra. “The results
validate that our proprietary hydrometallurgical process is able to
recover high-value elements from shredded lithium-ion batteries
effectively and confirm that the commissioning work we have
completed to date has made our refinery operational again after
being idle for more than a decade.”
Mr. Mell added, “These preliminary results represent a
significant milestone for the Company and the industry as we
believe it marks the first hydrometallurgical plant-scale recycling
of black mass in North America and the first recovery of a mixed
hydroxide nickel and cobalt product. These results pave the way for
us to extend our trial beyond the 75 tonnes we initially planned
and maximize the cashflow opportunities generated through the sale
of multiple products critical to the EV battery supply chain in
North America. We have established relations with black mass
producers in North America and abroad to support our continued
efforts.”
Black mass is the industry term used to describe the material
remaining once expired lithium-ion batteries are shredded and all
casings removed. Black mass contains high-value elements, including
nickel, cobalt, manganese, copper, lithium, and graphite, that once
recovered, can be recycled to produce new lithium-ion
batteries.
Established North American battery recyclers have focused on
collecting and shredding of batteries with the resulting black mass
material primarily treated by a pyrometallurgical smelting process
that has a higher carbon footprint and lower metal recoveries than
hydrometallurgical processes. Electra’s recoveries are believed to
be the first successful production in a plant-scale setting using a
hydrometallurgical process.
Recycling black mass will increasingly become a key feature of
the EV battery supply chain given the strong demand for critical
minerals and the looming supply deficit of metals such as nickel
and cobalt. According to data from McKinsey & Company,
available battery material for recycling is expected to grow by 20%
per year through 2040.
Electra launched its black mass demonstration plant at the end
of December 2022, and has processed material in a batch mode,
successfully extracting nickel, cobalt, manganese, copper, lithium,
and graphite.
As a result of preliminary results achieved thus far and
interest expressed by potential commercial partners, Electra has
decided to extend its black mass processing and recovering
activities through June 2023, beyond the Company’s initial target
of 75 tonnes. Engineering studies will be completed to assess
capital costs for permanent recycling facility adjacent to
Electra’s cobalt refinery, leveraging existing infrastructure,
buildings, equipment, permits and personnel.
The total amount of material to be processed and recovered
through June will be determined in the coming weeks. The Company
has identified multiple sources of supply, and is in discussions on
terms and conditions with vendors.
All of Electra’s recovered material will be sold to third-party
companies for additional processing and re-use in a number of
applications.
Refinery Project Update Since its last update released in
November, 2022, Electra has made continued progress on the
commissioning and construction of its cobalt refinery project
despite ongoing supply chain disruptions and delivery delays to
critical pieces of equipment.
Through February 10, 2023, Electra’s progress can be measured by
several key developments, including:
- Completed all testing of existing
brownfield equipment. - Completed 90 to 95 percent of all
procurement. - Completed 90 to 95 percent of detailed engineering.
- Completed approximately 90 percent of the erection of the solvent
extraction plant. - Completed construction of the cobalt sulfate
loadout facility. - Increased the project owners’ team to 31
personnel, which include tradespeople, engineers, operators, lab
technicians, and office support staff.
While constructing its crystallization circuit, the final stage
in the cobalt sulfate refining process, Electra took delivery of a
falling film evaporator vessel that was damaged in transit.
Custom-built for Electra, the vessel is used to vaporize water from
the cobalt solution before it can be crystallized into cobalt
sulfate. The evaporator vessel is valued at approximately
US$600,000, and measures approximately 60 feet in length and five
feet in diameter. While the equipment was deemed suitable for
installation, a third-party inspection has determined that onsite
repairs will be required before it can be commissioned.
Electra uses microchips throughout its refinery complex as part
of the process control system to regulate equipment and integrate
various circuits and systems together. Global supply shortages of
microchips have resulted in delays to delivery of several process
control system components. Although Electra has advanced the
construction of its refinery project, it has been unable to
progress fully on some work projects pending delivery of the
process control components.
As a result of the impact of critical equipment being damaged
enroute to the Company’s complex north of Toronto and ongoing
supply chain disruptions, Electra has withdrawn its guidance issued
on August 11, 2022, and November 9, 2022, for its fourth quarter
ending December 31, 2022 along with any forward-looking statements
previously made on the timing of the commissioning, capital spend
and production of its cobalt sulfate refinery. All forward-looking
statements previously disclosed are no longer applicable as a
result.
In light of recent developments, Electra is completing a review
of the refinery project scope, scheduling, and capital expenditures
and expects to provide results in the coming weeks.
“Ongoing global supply chain disruptions, notably with
microchips needed for monitoring equipment performance and the flow
of cobalt solution through various vessels, coupled with the
receipt of damaged equipment that is critical to the buildout of
the crystallization circuit have created unexpected delays to the
commissioning of our cobalt sulfate refinery timelines,” said Mr.
Mell. “While we evaluate a number of options, including the
procurement of equipment from alternative sources of supply,
construction has progressed ahead of equipment deliveries.
Site-level leadership is completing a baseline review of the
project and the Company anticipates providing an update in
conjunction with our year-end results to be issued before the end
of March.”
About Electra Battery Materials Electra is a processor of
low-carbon, ethically-sourced battery materials. Currently
commissioning North America’s only cobalt sulfate refinery, Electra
is executing a multipronged strategy focused on onshoring the
electric vehicle supply chain. Keys to its strategy are integrating
black mass recycling and nickel sulfate production at Electra’s
refinery located north of Toronto, advancing Iron Creek, its
cobalt-copper exploration-stage project in the Idaho Cobalt Belt,
and expanding cobalt sulfate processing into Bécancour, Quebec. For
more information visit www.ElectraBMC.com.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Cautionary Note Regarding Forward-Looking Statements
This news release may contain forward-looking statements and
forward-looking information (together, “forward-looking
statements”) within the meaning of applicable securities laws and
the United States Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical facts, are
forward-looking statements. Generally, forward-looking statements
can be identified by the use of terminology such as “plans”,
“expects', “estimates”, “intends”, “anticipates”, “believes” or
variations of such words, or statements that certain actions,
events or results “may”, “could”, “would”, “might”, “occur” or “be
achieved”. Such forward-looking statements include, without
limitation, statements regarding the attributes of the Notes, the
closing date of the Note Offering, the listing of the underlying
Common Shares and the expected use of proceeds of the Offering.
Forward-looking statements involve risks, uncertainties and other
factors that could cause actual results, performance, and
opportunities to differ materially from those implied by such
forward-looking statements. Factors that could cause actual results
to differ materially from these forward-looking statements are set
forth in the management discussion and analysis and other
disclosures of risk factors for Electra Battery Materials
Corporation, filed on SEDAR at www.sedar.com and with on EDGAR at
www.sec.gov. Although Electra Battery Materials Corporation
believes that the information and assumptions used in preparing the
forward-looking statements are reasonable, undue reliance should
not be placed on these statements, which only apply as of the date
of this news release, and no assurance can be given that such
events will occur in the disclosed times frames or at all. Except
where required by applicable law, Electra Battery Materials
Corporation disclaims any intention or obligation to update or
revise any forward-looking statement, whether as a result of new
information, future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20230214005847/en/
Joe Racanelli Vice President, Investor Relations
info@ElectraBMC.com 1.416.900.3891
Electra Battery Materials (NASDAQ:ELBM)
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