Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V:
ELBM) (“Electra” or the “Corporation”) today 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.
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Overhead view of Electra's refinery
(Photo: Business Wire)
Electra has in recent weeks received US$5 million1 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 US$200 million. The Company estimates that an
additional US$55.7 to $62 million (approximately) 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 1.5 million EVs annually. On July 24, 2023 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$10.9 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.”
Mr. Mell added, “To that end, we continue to advance discussions
with a number of potential strategic partners to forge stronger
relationships and secure offtake agreements and strategic
investments. Among these include our efforts to advance our joint
venture with Three Fires Group that is focused on recycling battery
waste in Ontario.
“Keys to our progress with Three Fires include discussions on
the construction of a shredding facility in Ontario that will
provide a direct source of black mass feed to our refinery,
identification of potential shredding technology, and site visits
to shredding technology and equipment providers. We remain
encouraged by Three Fires’ continued commitment of a strategic
investment in Electra.”
In June 2021, Electra launched its project to expand and
recommission an idled refinery capable of producing 5,000 tonnes of
cobalt contained in cobalt sulfate per year. Electra’s refinery,
which is located in Temiskaming Shores, Ontario, is a fully
permitted facility. Once fully constructed, the refinery has the
capacity to expand to 6,500 tonnes of cobalt contained in cobalt
sulfate per year. The cobalt refinery is the first stage of a
multi-pronged effort to produce battery grade cobalt, nickel and
manganese and refine black mass from battery scrap, all within an
integrated complex.
The project has been de-risked through the delivery of long lead
equipment and by commissioning the legacy refinery operations for a
black mass demonstration plant. There remains, however, a
significant amount of construction work to complete and commission
the solvent extraction plant and the crystallizer circuit.
Pending completion of all its multiprong stages, Electra’s
refinery complex could be the first in North America to integrate
the production of critical minerals, including cobalt and nickel
sulfate, needed for the electric vehicle battery supply chain and
the processing of black mass material designed to recover high
value elements found in recycled lithium-ion batteries, including
lithium, nickel, cobalt, manganese, graphite, and copper.
As disclosed previously, Electra completed a re-baseline
engineering report to identify the refinery’s updated project
scope, scheduling, and capital expenditures. This updated
re-baseline engineering work was undertaken by the refinery
project’s engineering, procurement, and construction management
(EPCM) contractor and reviewed by an independent, third-party
estimator.
The re-baseline engineering report determined that the total
capital costs for completing the refinery project are now estimated
at approximately US$113 to $121.8 million, of which approximately
US$59.6 million has been capitalized as at the end of Q2 2023.
Discussions are underway with various commercial partners,
government agencies and other parties to address the funding
shortfall with a primary focus on securing non-dilutive funding.
The timeline for completing the refinery project will be contingent
on securing the needed capital.
As at September 30, 2023, the Company had a cash balance of
approximately C$15.1 million. The Company is expected to report its
Q3 2023 financial results and performance by November 15, 2023.
Electra will continue to provide updates on the progress of its
refinery project and efforts to secure funding.
About Electra Battery Materials
Electra is a processor of low-carbon, ethically-sourced battery
materials. Currently constructing 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”. Forward-looking statements are based on certain
assumptions, and 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. Among the bases for assumptions with respect to the
potential for additional government funding are discussions and
indications of support from government actors based on certain
milestones being achieved. 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. Other factors that could actually results to differ
materially include changes with respect to government or investor
expectations or actions as compared to communicated intentions, and
general macroeconomic and other trends that can affect levels of
government or private investment. Although the Company 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, the Company disclaims any
intention or obligation to update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise.
1 All amounts are presented in US currency unless noted Canadian
currency amounts were converted to US$ at an exchange rate of US$1
to C$1.37.
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version on businesswire.com: https://www.businesswire.com/news/home/20231023036389/en/
Joe Racanelli Vice President, Investor Relations
info@ElectraBMC.com 1.416.900.3891
Electra Battery Materials (NASDAQ:ELBM)
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