Electra Battery Materials Considers Construction Of Second Cobalt Sulfate Refinery

They may not have yet completed their first cobalt sulfate refinery, but Electra Battery Materials (TSXV: ELBM) already has growth on its mind. The company is reportedly “evaluating” the development of a second such facility within Canada.

The new facility currently being evaluated would be constructed in connection with an effort by the Government of Quebec to build a battery materials park in Becancour. Preliminary discussions with the provincial government are reportedly underway related to Electra’s involvement in the park.

The park itself is looking to become a hub for the supply of battery materials for the electric vehicle market. The park to date has seen several commitments for the construction of manufacturing facilities for precursor cathode active materials and cathode active materials, which are used in the making of lithium-ion batteries. Materials for these products include nickel and cobalt sulfate, the refineries for which do not presently exist in the region.

A study is now being undertaken by Electra for the feasibility of a second cobalt sulfate refinery, which is said to include production requirements, capital costs, permitting considerations, potential synergies from integration, funding opportunities and more. The study is expected to be completed by the end of the year.

The company currently expects its first cobalt sulfate refinery to be through commissioning in the fourth quarter of 2022, with production of 5,000 tonnes per annum of battery grade cobalt expected to begin in 2023. Nickel sulfate production is expected to begin the following year.

Electra Battery Materials last traded at $4.38 on the TSX Venture.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization unless otherwise mentioned. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply