Electra Battery Materials Enters Tolling Agreement With Glencore

Electra Battery Materials Corp (TSXV: ELBM) has entered a commercial arrangement with Glencore related to the tolling of cobalt feedstock. The feedstock is to come from Glencore’s KCC mine to be processed at Electra’s soon-to-be-running refinery in Canada.

The arrangement will see Glencore hold the option to have up to 1,000 tonnes of contained cobalt refined at the refinery being established by Electra, which will be refined under a tolling agreement. Electra will also have the option to purchase additional feedstock for processing for a five year period, with quantities remaining undisclosed.

The current plans call for the refinery to have an annual capacity of 5,000 tonnes of cobalt production, before undergoing an expansion to 6,500 tonnes of capacity per annum. The firm is looking to differentiate its raw product via the push of the facility having “the lowest carbon footprint in the global automotive supply chain,” as it relates to cobalt.

Following the option arrangement with Glencore, the firm has now secured the supply of a total of 4,500 tonnes of contained cobalt per year for a five year period, just shy of the refinery’s production capacity. The refinery is expected to come online in Q4 2022.

Financial details of the tolling arrangement were not provided. Additional purchases of feedstock by Electra meanwhile are to be “linked to the prevailing market price of cobalt hydroxide.” Glencore will also reportedly market the resulting cobalt sulfate in conjunction with Electra.

Electra Battery Materials last traded at $0.31 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.

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