Electra and Ontario Advance North America’s Critical Minerals Future with $17.5 Million Funding Agreement

Rhea-AI Summary

Electra Battery Materials (NASDAQ: ELBM; TSX-V: ELBM) finalized definitive agreements with Invest Ontario for C$17.5 million in previously announced funding to support construction of its cobalt sulfate refinery in Temiskaming Shores, Ontario. The project aims to establish North America’s first battery-grade cobalt sulfate refinery and strengthen regional critical mineral supply chains.

According to Electra, construction is advancing, with commissioning activities targeted to begin in Q4 2026, mechanical completion in Q2 2027, full commissioning and ramp-up in Q3 2027, and commercial production in Q4 2027. Electra has secured 100% of cobalt feedstock needed for commissioning and ramp-up through 2027 via an extended supply agreement with Glencore, providing about 10,000 tonnes of contained cobalt over five years and establishing Glencore as a significant supplier through 2031. The fully permitted brownfield facility is designed to initially produce 5,120 tonnes of contained cobalt annually, with crystallizer nameplate capacity up to 6,500 tonnes annually. Electra also plans to issue 500,000 incentive stock options, vesting over three years, subject to TSX Venture Exchange approval.

Positive

• C$17.5M Ontario funding finalized to support refinery construction
• 100% cobalt feedstock for commissioning and ramp-up secured through 2027
• 10,000 tonnes contained cobalt supply over five years from Glencore
• Refinery designed for 5,120 t/year cobalt, up to 6,500 t nameplate
• Glencore supply agreement extends Electra feedstock access through 2031

Negative

• Planned grant of 500,000 stock options may add shareholder dilution
• Commercial production timeline extends to Q4 2027, delaying revenue generation

News Explained

Electra plans to issue 500,000 incentive stock options, subject to TSX Venture Exchange approval; the grant is tied to the August 25, 2026 closing price and would vest in three equal tranches on the first, second and third anniversaries over a four-year period.

Market Context

The active F-3 resale registration covered 108,836,744 shares, adding capital-structure context to t...

Analysis

The active F-3 resale registration covered 108,836,744 shares, adding capital-structure context to this funding announcement; Electra receives no proceeds from resales. Short positioning was relatively low, while refinery execution remained the key risk.

Key Figures

Ontario funding: C$17.5M Commissioning target: Q4 2026 Commercial production target: Q4 2027 +5 more

8 metrics

Ontario funding C$17.5M Funding agreement for cobalt sulfate refinery construction

Commissioning target Q4 2026 Select refinery commissioning activities

Commercial production target Q4 2027 Cobalt sulfate refinery

Feedstock secured 100% Cobalt feedstock required for commissioning and ramp-up through 2027

Contained cobalt supply 10,000 tonnes Approximately over five years under the Glencore agreement

Initial production capacity 5,120 tonnes annually Initial contained cobalt production design

Crystallizer capacity 6,500 tonnes annually Maximum crystallizer nameplate capacity

Incentive stock options 500,000 Options issued in connection with recent appointments

Historical Context

5 past events · Latest: Aug 20 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Aug 20	Feedstock agreement	Positive	-0.9%	Secured refinery feedstock through 2027 under extended Glencore supply agreement
Aug 18	Construction progress	Positive	+0.8%	Advanced refinery construction and finalized approximately C$32.8 million contractor agreements
Aug 12	Earnings and appointment	Positive	+0.7%	Reported second-quarter results and appointed a permanent chief financial officer
Aug 06	Regulatory policy	Positive	+5.1%	Welcomed U.S. restrictions supporting domestic battery-material refining capacity
Jul 20	Credit amendment	Neutral	+1.3%	Amended secured credit facility to increase flexibility for government-related financing

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent news reactions aligned with the event direction in four of five events; the Aug 20 feedstock update diverged with a -0.92% reaction.

Key Terms

cobalt sulfate refinery, brownfield facility, crystallizer nameplate capacity, contained cobalt

4 terms

cobalt sulfate refinery technical

"funding to support construction of its cobalt sulfate refinery in Temiskaming Shores"

A cobalt sulfate refinery is an industrial plant that converts raw cobalt-bearing ore or intermediates into cobalt sulfate, a purified chemical used mainly in rechargeable battery cathodes and other industrial applications. For investors, the facility is a key link in the supply chain: its output and operating costs influence availability, price stability and profit margins for companies that make batteries or rely on cobalt, much like a flour mill affects the cost and supply of baked goods.

brownfield facility technical

"the fully permitted brownfield facility is expected to be the only refinery"

A brownfield facility is an existing industrial or commercial site that has been previously developed and may have leftover buildings, infrastructure or environmental contamination. For investors, brownfields matter because reusing or upgrading an existing site can be faster and cheaper than building new, but may carry added cleanup, regulatory and liability costs—think renovating an old house rather than building from scratch. The balance of cost, time and risk affects project returns and stock value.

crystallizer nameplate capacity technical

"with crystallizer nameplate capacity of up to 6,500 tonnes annually"

Maximum continuous production throughput a crystallizer is designed to handle under normal operating conditions, usually expressed in mass per time (e.g., tonnes per day) or volume. Investors care because it sets the technical ceiling on how much crystalline product (such as salts, chemicals, fertilizers, or active pharmaceutical ingredients) a facility can make; like a factory’s stated horsepower, it helps compare capacity, scale-up potential, and the realistic limits on revenue tied to physical output.

contained cobalt technical

"approximately 10,000 tonnes of contained cobalt over five years"

Contained cobalt is the amount of pure cobalt metal estimated to be present within a mineral deposit, ore, concentrate, or finished product, usually reported in tonnes or pounds. It is calculated by multiplying the material’s weight by its cobalt grade, so it’s like saying how much sugar is in a sack of sugarcubes rather than how many cubes there are. Investors use it to gauge the scale of a resource or production stream and the raw material available to sell or refine.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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TORONTO, Aug. 26, 2026 (GLOBE NEWSWIRE) -- Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V: ELBM) (“Electra” or the “Company”) is pleased to announce that it has finalized definitive agreements with Invest Ontario, an agency of the Government of Ontario, for C$17.5M in previously announced funding to support construction of its cobalt sulfate refinery in Temiskaming Shores, Ontario.

“We are grateful to Invest Ontario and the Government of Ontario for their continued partnership on this strategic asset,” said Trent Mell, CEO of Electra. “We are focused on completing North America’s first cobalt sulfate refinery and creating the long term employment and economic activities that come with it. Ontario brings together a rich mineral endowment, a highly skilled workforce, abundant renewable energy and more than a century of natural resources expertise. This project leverages those advantages to establish essential critical mineral processing capacity that strengthens North America’s supply security.”

“At a time when secure supply chains have never mattered more, Electra’s cobalt refinery will onshore a key capability needed to support North America’s manufacturing sectors,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “We congratulate the team on this latest milestone and look forward to seeing this project strengthen Ontario’s critical mineral processing capacity, while generating lasting economic benefits for Northern workers.”

Construction of Electra’s cobalt sulfate refinery is advancing, with structural steel erection, concrete work, equipment installation and piping underway. Select commissioning activities are targeted to begin in the fourth quarter of 2026, followed by mechanical completion in the second quarter of 2027, full commissioning and production ramp-up in the third quarter of 2027, and commercial production in the fourth quarter of 2027.

Electra has also secured 100% of the cobalt feedstock required for commissioning and ramp-up through 2027 under an extended supply agreement with Glencore. The agreement provides for approximately 10,000 tonnes of contained cobalt over five years and establishes Glencore as a significant long-term supplier through 2031. Together with committed demand for a majority of the refinery’s planned production, the agreement strengthens an integrated supply chain connecting global cobalt production with North American refining and downstream battery markets.

Once operational, the fully permitted brownfield facility is expected to be the only refinery in North America producing battery-grade cobalt sulfate. It is designed to initially produce 5,120 tonnes annually of contained cobalt, with crystallizer nameplate capacity of up to 6,500 tonnes annually, helping address a critical gap in North America’s supply chain and reduce reliance on foreign refining.

Figure 1: Hon. Minister Victor Fedeli visits Electra Refinery. Aug 25, 2026.

Cobalt sulfate is a critical mineral with applications spanning defense, electronics and energy, yet the vast majority of the world’s supply is refined in China. Electra’s refinery is designed to bring this capability to North America, giving allied manufacturers a secure, transparent source of supply and reducing reliance on foreign-controlled production.

In addition to strengthening domestic refining capacity, the project is expected to generate lasting economic benefits for Ontario. The refinery is expected to support local employment and expand economic activity in Temiskaming Shores, while creating opportunities for Ontario businesses and Canadian suppliers, and reinforcing the province’s position as a leader in critical minerals processing.

“Governments around the world are investing to build secure critical minerals supply chains, and refining remains one of the most strategically important - and least developed - links in the critical minerals supply chain,” added Mell. “The province’s partnership is helping bring that strategic capability to Ontario while supporting long-term employment, opportunities for local businesses and regional economic development in the North.”

The Government of Ontario’s support reflects the strategic importance of establishing domestic refining capacity, Ontario is demonstrating the leadership and long-term vision needed to strengthen Canada’s critical minerals strategy and North America’s industrial resilience.

The Company also announces that accordance with its Long-Term Incentive Plan, and in connection with the recent appointments, the Company will issue 500,000 incentive stock options, adjusted for the closing price as of August 25, 2026. The stock options will vest in three equal tranches on the first, second and third anniversary of the grant date over a four-year period. The grant is subject to the approval of the TSX Venture Exchange. Long-term incentive grants are an important retention and incentive tool for key employees, and a mechanism to align interests with shareholders.

About Electra Battery Materials

Electra is a leader in advancing North America’s critical minerals supply chain. The Company’s primary focus is constructing North America’s only cobalt sulfate refinery, as part of a phased strategy to onshore critical minerals refining and reduce reliance on foreign supply chains. In addition to the Refinery, Electra holds a significant land package in Idaho’s Cobalt Belt, including its Iron Creek project and surrounding properties, positioning the Company as a potential cornerstone for North American cobalt and copper production.

Electra is also advancing black mass recycling opportunities to recover critical materials from end-of-life batteries, while continuing to evaluate growth opportunities in nickel refining and other downstream battery materials. For more information, please visit www.ElectraBMC.com.

Contact

Heather Smiles
Vice President, External Affairs & Corporate Development
Electra Battery Materials
info@ElectraBMC.com
1.416.900.3891

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward Looking Statements

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws (collectively, “forward-looking statements”). Forward-looking statements in this news release include, but are not limited to, statements relating to the anticipated timing of mechanical completion and commencement of operations at the refinery; expected production capabilities; anticipated economic, employment and supply-chain benefits; the Company’s financing plans strategic objectives; business plans; future operations; and growth opportunities. Forward-looking statements are based on management’s current expectations, estimates, projections, beliefs and assumptions, including assumptions regarding market conditions, financing opportunities and the Company’s ability to execute its business plans. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among others, risks relating to the Company’s capital requirements, availability of financing, market and economic conditions, regulatory developments and other risks described in the Company’s public disclosure documents available under its profile on SEDAR+. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements are made as of the date of this news release and, except as required by applicable law, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/fc55b990-1c26-4f2e-8827-3a6a197802d3

FAQ

What is the value of Electra Battery Materials’ new funding agreement with Ontario for its refinery (NASDAQ: ELBM)?

Electra secured C$17.5 million from Invest Ontario to support construction of its cobalt sulfate refinery. According to Electra, this provincial funding backs a strategic critical minerals asset in Temiskaming Shores, aimed at strengthening North America’s cobalt refining and battery materials supply chain.

When will Electra Battery Materials’ cobalt sulfate refinery (ELBM) start commercial production?

Commercial production is targeted for the fourth quarter of 2027. According to Electra, initial commissioning is planned for Q4 2026, with mechanical completion in Q2 2027 and full commissioning plus production ramp-up in Q3 2027 before commercial operations begin.

How much cobalt feedstock has Electra Battery Materials secured under its Glencore agreement (ELBM)?

Electra has secured approximately 10,000 tonnes of contained cobalt over five years from Glencore. According to Electra, this agreement covers 100% of feedstock needed for commissioning and ramp-up through 2027 and positions Glencore as a significant supplier through 2031.

What is the planned annual production capacity of Electra Battery Materials’ cobalt refinery (NASDAQ: ELBM)?

The refinery is designed to initially produce 5,120 tonnes of contained cobalt annually. According to Electra, crystallizer nameplate capacity could reach up to 6,500 tonnes per year, creating a domestic source of battery-grade cobalt sulfate in North America.

Why is Electra Battery Materials’ cobalt sulfate refinery important for North America’s critical minerals supply chain (ELBM)?

The refinery is expected to be North America’s only producer of battery-grade cobalt sulfate. According to Electra, it will onshore critical refining capacity, reduce reliance on foreign refining, and support allied manufacturers in defense, electronics, and energy applications.

What stock options is Electra Battery Materials granting under its Long-Term Incentive Plan (ELBM)?

Electra plans to issue 500,000 incentive stock options, subject to TSX Venture Exchange approval. According to Electra, the options vest in three equal tranches on the first, second, and third anniversaries of the grant date over a four-year period to support retention and alignment.

Has Electra Battery Materials secured demand for production from its cobalt refinery (NASDAQ: ELBM)?

Electra reports having committed demand for a majority of the refinery’s planned production. According to Electra, this demand, combined with secured Glencore feedstock, supports an integrated supply chain connecting global cobalt production to North American refining and downstream battery markets.