Construction has finally resumed for Electra Battery Materials (TSXV: ELBM) at their cobalt sulfate refinery. The refinery, which is the only such facility in North America, is a brownfield project which already has the required permits and infrastructure in place for operation.
The restart of construction to bring the refinery back into operation follows Electra successfully securing US$82 million in project financing, which includes US$48 million from both Canadian and American governments. The restart is said to now be fully funded for both completion and commissioning.
A 2023 baseline estimate suggested that US$60 million in capital was required to get the facility operational, although estimates are being updated to reflect work completed and inflationary impacts.
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Once operational, the facility is expected to be capable of producing 6,500 tonnes per year of battery grade cobalt, which will be used for defense and industrial applications in North America. An offtake arrangement with LG Energy Solution is already in place, while arrangements are also in place for the refinery to process feedstock from Glencore and Eurasian Resources Group.
“Today, government support, private investment, and industrial policy are aligned to make completion of this refinery possible and to deliver a critical asset for North America. With the right team in place and a clear mandate, we are committed to driving this project through to completion. Once operational, this refinery will prove that midstream processing can be successfully onshored, creating a foundation for future growth,” commented Trent Mell, CEO of Electra Battery Metals.
The construction effort will see the reinstatement of mechanical, electrical, and instrumentation systems, with site preparation now underway. In addition to reactivation, improvements are planned for the existing conveyor system and electrical infrastructure as part of design improvement.
Full construction mobilization is anticipated in early 2026, with further details on timelines and final costing expected in January.
Electra Battery Materials last traded at $1.52 on the TSX Venture.
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