Electra Battery Materials announces US$5M in new financing

Feds provide funds for cobalt refinery The federal government gives $5 million to support the development of a cobalt refinery in Cobalt, Ont. for EVs. Eric Taschner reports.

Electra Battery Materials Corp. announced Friday that it has arranged for US $5 million in new financing.

"These funds will enable the company to initiate certain early works and winter preparations at the Ontario refinery project site in Temiskaming Shores, Ont., as well as being used for general corporate purposes," the company said in a news release.

Electra is currently recommissioning and expanding its hydrometallurgical cobalt refinery in North Cobalt. Once complete, the refinery will be able to refine enough cobalt for use in the batteries of 1.5 million electric cars a year.

"Given our objective of resuming construction shortly upon completing the project financing package, part of our preparations for the final phase of construction of North America’s only cobalt sulfate refinery is initiating some early works before winter sets in," Electra CEO Trent Mell said in the news release.

"This liquidity strengthens our balance sheet as we work to complete this package and we are grateful for our lenders’ ongoing support of our business plan."

Mell said Electra's plans supports the goal of reducing the reliance on China in the EV materials supply chain.

"Electra’s refinery is expected to be the first of its kind in North America," he said.

Electra is a processor of low-carbon, ethically sourced battery materials. Currently focused on developing North America’s only cobalt sulfate refinery, Electra is executing a phased strategy to onshore the electric vehicle supply chain and provide a North American solution for EV battery materials refining.

Keys to its strategy are integrating black mass recycling, expanding cobalt sulfate processing into Bécancour, Que., and exploring nickel sulfate production potential within North America.

For more information, visit the company's website.