Electra Battery Materials Corporation reports developments tied to its role as a North American critical minerals refining company. News centers on construction of its Ontario cobalt sulfate refinery, including engineering progress, process-area contracts, equipment procurement, government funding, commissioning plans, and project budgeting.
Company updates also cover cobalt supply arrangements for battery customers, feedstock testing linked to North American cobalt sources, work on black mass recycling and downstream battery-materials opportunities, financial results, recapitalization activity, and common-share financing through its at-the-market equity program.
Electra Battery Materials (NASDAQ: ELBM; TSX-V: ELBM) has successfully produced technical grade lithium carbonate with over 99% purity in its black mass recycling project. This achievement, potentially the first of its kind in North America, strengthens Electra's ability to produce high-quality products for the battery industry.
The company's proprietary hydrometallurgical process has demonstrated success in producing lithium carbonate, nickel-cobalt MHP, and graphite. Electra recently received a C$5 million funding commitment from the Canadian government to develop this phase of their business. Additionally, Electra has formed a joint venture, Aki Battery Recycling, with the Three Fires Group to secure a steady source of black mass for future operations.
Electra is also addressing a Nasdaq non-compliance notice regarding the minimum bid price requirement. The company has submitted an appeal request, with a hearing scheduled for November 5, 2024.
Electra Battery Materials (NASDAQ: ELBM; TSX-V: ELBM) has announced a joint venture, Aki Battery Recycling, with Indigenous-owned Three Fires Group to produce battery black mass through recycling lithium-ion battery scrap. The venture aims to address the environmental impact of battery waste by returning scrap to the supply chain. Three Fires Group will lead capital resourcing and facility location, while Electra provides technical and commercial leadership.
The joint venture will establish a state-of-the-art facility in southern Ontario to process battery waste into black mass, which will then be refined at Electra's hydrometallurgical refinery. This initiative aligns with Electra's mission to onshore North America's EV battery supply chain sustainably. The global volume of lithium-ion batteries available for recycling is forecasted to increase from 23.3 GWh in 2023 to 376.1 GWh by 2035.
Electra Battery Materials (NASDAQ: ELBM; TSX-V: ELBM) has received a non-binding term sheet for a $20 million prepayment facility from a strategic player in the battery materials sector. This investment, if consummated, would be comprised of an immediate $10 million investment and a follow-on $10 million during the refinery's commissioning phase. The company needs an additional $60 million in capital costs to complete its $250 million cobalt facility in North America.
Electra's facility could produce up to 6,500 tonnes of cobalt per year, potentially supporting the production of over 1 million EVs annually. LG Energy Solution intends to purchase up to 80% of capacity over the first five years of operation. The company is also making progress in securing other non-dilutive financing sources, including government programs.
Electra Battery Materials (NASDAQ: ELBM; TSX-V: ELBM) announced its participation in Indonesia's first critical minerals conference, Fastmarket's International Critical Minerals and Metals Summit: Indonesia. CEO Trent Mell will discuss Indonesia's role in building an IRA-compliant supply chain for the North American battery materials sector. This follows Electra's recent US$20M Department of Defense grant for advancing domestic cobalt refining capabilities.
Electra's near-term priority is recommissioning and expanding its Ontario cobalt refinery. Long-term plans include onshoring additional critical mineral refining processes, potentially including a closed loop for recycled battery materials, a second cobalt sulfate facility in Bécancour, Quebec, and a North American nickel sulfate refinery.
Electra Battery Materials (NASDAQ: ELBM; TSX-V: ELBM) has signed a strategic advisory agreement with Altitude Capital Consultants Inc., led by Michael Wekerle and Gene McBurney, to provide capital markets strategy and analysis of market opportunities. This move supports Electra's plans to build a North American battery materials supply chain.
Michael Wekerle views Electra's cobalt Refinery project in Ontario as a 'perfect storm' for the green economy, small-cap mining companies, and Canadian businesses. Gene McBurney emphasized the strategic importance of the U.S. Department of Defense's recent investment in Electra's project, aligning with North America's push for a domestic supply chain of critical minerals.
Altitude has been engaged for an initial 12-month term, effective August 28, 2024. Electra has granted Altitude 1,000,000 incentive stock options, exercisable at $0.85 for three years, vesting quarterly over one year.
Electra Battery Materials (NASDAQ: ELBM; TSX-V: ELBM) has been awarded $20 million by the U.S. Department of Defense under Title III of the Defense Production Act. The funds will support the construction and commissioning of North America's only cobalt sulfate refinery, capable of producing battery-grade materials for lithium-ion batteries. The $250 million refinery project, located in Temiskaming Shores, is projected to have the lowest carbon footprint in the world and can produce 6,500 tonnes of cobalt per year, supporting the production of over 1 million EVs annually. LG Energy Solution will purchase up to 80% of capacity over the first five years. The award aims to strengthen the resiliency of the North American battery supply chain and reduce reliance on foreign manufacturing.
Electra Battery Materials (NASDAQ: ELBM; TSX-V: ELBM) has reached an agreement with holders of US$51 million in convertible notes to pay accrued interest through August 15, 2024, in-kind rather than cash. This results in additional notes worth US$6.5 million. The company also filed its Q2 2024 financial results.
Key points:
- Agreement preserves liquidity for cobalt refinery project
- Canadian Refinery is the primary focus, aiming to resume construction after securing funding
- Government of Canada provided $5 million for battery recycling program
- Global EV demand expected to increase by 22% in 2024
- Partnerships with ERG and Glencore secure feed material for full refinery capacity
- LG Energy Solutions has secured up to 80% of production
- Cash balance at quarter-end: C$4.8M
Electra Battery Materials (NASDAQ: ELBM; TSX-V: ELBM) held its 2024 annual general and special meeting of shareholders on August 13 in Toronto. 23.6% of the company's issued and outstanding Common Shares were represented. Shareholders approved all items of business, including the appointment of MNP LLP as external auditors and the election of four director nominees. The 2022 Amended and Restated LTIP was approved, increasing the number of awards issuable, with a total of 7,319,847 Common Shares now reserved for issuance. The Employee Share Purchase Plan was also approved, with a maximum of 1,000,000 Common Shares reserved. Both plans are subject to final acceptance by the TSX Venture Exchange.
Electra Battery Materials (NASDAQ: ELBM; TSX-V: ELBM) has announced a new copper showing near its Iron Creek Project in Idaho and provided updates on its exploration activities. Key highlights include:
1. Discovery of the Malachite Hill Copper Showing on the Redcastle Agreement claims.
2. Extension of the Redcastle Property Agreement's main exploration expenditure commitments by two years.
3. Application for a 10-year exploration permit for drilling activities.
4. Updated Mineral Resource Estimate for the Iron Creek Project, including 18.4 million pounds of cobalt and 71.5 million pounds of copper in the Indicated category.
The company aims to maximize the value of its Idaho assets while focusing on completing its cobalt refinery project in Ontario.
Li-Cycle Holdings Corp. (NYSE: LICY) has appointed Craig Cunningham as its permanent Chief Financial Officer (CFO), effective July 20, 2024. Cunningham, who has served as interim CFO since March 2024, brings nearly two decades of experience in accounting, finance, operations, and capital markets, with a strong background in the battery materials and mining sectors. His appointment comes as Li-Cycle continues to execute key objectives, including working with the U.S. Department of Energy on financing documentation for a potential loan and reviewing the Rochester Hub project. Cunningham's experience includes roles at Electra Battery Materials and Kinross Gold , positioning him to support Li-Cycle's growth and strategic priorities in the lithium-ion battery resource recovery industry.