Electra Battery Materials (TSXV: ELBM) says construction of its cobalt sulfate refinery is still tracking within its US$73 million budget, even as the number of workers on site has more than doubled since August.
The site workforce now stands at 130 people, up from roughly 60 at the time of the company’s previous update. Work has shifted from foundations and steel erection toward equipment installation, building enclosure and electrical work, and the project has logged zero lost-time incidents through the busier stretch.
Progress varies by area. Mechanical equipment in the crystallization circuit is installed and that building’s cladding and roofing are nearing completion. In the solvent extraction building, interior structural steel is finished and lamination of fiberglass-reinforced plastic process equipment has begun. Removal of redundant equipment and piping in the existing refinery is largely done, and civil works on Phase II of the tailings storage facility are about 40% complete.
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The release did flag one pressure point. The timing of fabrication and installation for FRP process piping in the solvent extraction area is weighing on the schedule, and Electra is evaluating ways to accelerate that work after recently awarding the contract to FRP Systems Ltd. The company expects any adjustment, if one is needed, to be modest.
Electra’s most recent guidance, issued in August, targets select commissioning activities in the fourth quarter of 2026, mechanical completion in the second quarter of 2027 and commercial production in Q4 2027.
“North America needs a domestic source of battery-grade cobalt, and this refinery is becoming that source,” said CEO Trent Mell. “With feed secured, key offtake committed and strategic partners alongside us, we are confident in the path ahead.”
Operational readiness is moving in parallel. Metso has been engaged as a site advisor through commissioning, the on-site laboratory has completed analytical method development for battery-grade cobalt sulfate, and instrument validation is underway.
On the commercial side, an extended agreement with Glencore covers all of the cobalt hydroxide feed needed for commissioning and ramp-up through 2027, with roughly 10,000 tonnes of contained cobalt to be supplied through 2031. LG Energy Solution has committed to take about 60% of planned output through 2029, while a term sheet signed earlier this month with commodities trader WMC Group would finance feedstock purchases and market the refinery’s product.
The facility is designed to process approximately 18,000 tonnes of cobalt hydroxide a year into 5,120 tonnes of contained cobalt.
Electra Battery Materials last traded at $0.63 on the TSX Venture.
