Electra Battery Materials (NASDAQ: ELBM) turns profit and advances cobalt refinery

Q: How did Electra Battery Materials (ELBM) perform financially in Q2 2026?

Electra reported Q2 2026 net income of $9,028 versus a $2,005 loss a year earlier. The swing was driven mainly by a $15,233 fair value gain on US warrants, while operating expenses increased modestly to $4,021 .

Q: What were Electra Battery Materials’ results for the six months ended June 30, 2026?

For the first half of 2026, Electra posted net income of $37,170 compared with a $14,685 loss in 2025. Results include a $48,541 non‑cash gain on US warrants and an operating loss of $7,864 , reflecting ongoing pre‑revenue development.

Q: What is the funding status and budget for Electra’s Ontario cobalt refinery?

The Board approved a US$73 million construction budget to mechanical completion. Electra reports securing about US$82,000 of combined government support and equity financing, but still expects additional working‑capital and ramp‑up funding needs.

Q: Why does Electra Battery Materials have a going concern warning?

Management notes recurring operating losses , negative cash flows, and an accumulated deficit of $371,187 , plus reliance on new equity or debt financing. These factors create substantial doubt about Electra’s ability to continue as a going concern without additional funding.

Q: What is Electra Battery Materials’ cash and debt position as of June 30, 2026?

Electra held $35,872 in cash and cash equivalents and $1,208 in long‑term restricted cash. Key liabilities included a $41,302 term loan, $5,549 in government loans, a $2,543 royalty liability and $33,117 of US warrant liabilities.

Filing Impact

(Neutral)

Filing Sentiment

(Neutral)

Form Type

6-K

Rhea-AI Filing Summary

Electra Battery Materials Corporation reported net income of $9,028 for Q2 2026 and $37,170 for the first half of 2026, reversing prior-year losses mainly due to a $48,541 non‑cash gain from changes in the fair value of US warrants. Core operations still generated an operating loss of $7,864 for the six months.

Total assets were $196,256 at June 30, 2026, including cash and cash equivalents of $35,872. Shareholders’ equity increased to $97,300 from $46,250 at year‑end, supported by warrant fair‑value movements and equity issuance, while total liabilities declined to $98,956, including a $41,302 term loan and $33,117 of US warrant liabilities.

The company is advancing its Ontario cobalt sulfate refinery under a Board‑approved construction budget of US$73 million, targeting early commissioning in Q4 2026 and commercial production in Q4 2027. Management cites substantial doubt about the company’s ability to continue as a going concern due to recurring operating losses, negative operating cash flows and dependence on additional financing, despite having secured about US$82,000 of aggregate governmental and equity support. Electra also faces a Nasdaq minimum bid‑price deficiency with a compliance deadline of September 14, 2026.

Positive

None.

Negative

Going concern uncertainty: recurring operating losses, negative operating cash flows and an accumulated deficit of $371,187 raise substantial doubt about the company’s ability to continue as a going concern.
Nasdaq listing risk: the company received a Nasdaq notice for failing the US$1.00 minimum bid requirement and has until September 14, 2026 to regain compliance.
High funding and commitment burden: future contractual commitments total $89,720 and include term loan, government loan and royalty payments, leaving the refinery plan sensitive to funding timing and cost pressures.

Filing Explained

Completed ATM issuance added 7,743,900 shares and C$8,991 thousand net cash, increasing outstanding shares to 106,800,138 by June 30, 2026.

This August 12 Form 6-K provides Electra’s interim financial statements and management discussion for the six months ended June 30, 2026. It reports completed issuance of 7,743,900 common shares through the ATM program, with net proceeds of C$8,991 thousand.

The new shares increased common shares outstanding from 98,982,239 at December 31, 2025 to 106,800,138 at June 30, 2026, expanding the share base and reducing existing holders’ percentage ownership absent offsetting changes. The ATM is a gradual share-selling arrangement at prevailing market prices, so the reported issuance is completed financing rather than merely unused program capacity.

After quarter-end, the filing reports an amendment to the senior secured credit agreement allowing greater flexibility for government financing and definitive Invest Ontario documentation for a previously announced $17,500 thousand funding commitment. Government-funding receipts may not align with project expenditures, leaving timing of cash availability as a stated working-capital consideration.

Key Figures

Net income H1 2026: $37,170 Operating loss H1 2026: $7,864 Change in fair value of US warrants: $48,541 +5 more

8 metrics

Net income H1 2026 $37,170 Net income for the six months ended June 30, 2026

Operating loss H1 2026 $7,864 Operating loss for the six months ended June 30, 2026

Change in fair value of US warrants $48,541 Non‑cash gain for the six months ended June 30, 2026

Cash and cash equivalents $35,872 Balance as at June 30, 2026

Total assets $196,256 Balance sheet total as at June 30, 2026

Term loan balance $41,302 Non‑current liability as at June 30, 2026

US warrants liability $33,117 Current liability as at June 30, 2026

Refinery construction budget US$73 million Board‑approved budget to mechanical completion

Key Terms

going concern, at-the-market (“ATM”) equity program, asset retirement obligation, Pre-Funded Warrants, +2 more

6 terms

going concern financial

"The Company’s recurring losses from operations and negative cash flows raise substantial doubt about the Company’s ability to continue as a going concern."

Going concern is the accounting assumption that a company will keep operating and meeting its obligations for the foreseeable future. The phrase matters most when a company or its auditors disclose substantial doubt about it, a formal warning that the business may not have enough resources to continue without raising money, restructuring, or selling assets. That language in a filing or press release signals elevated financial risk.

at-the-market (“ATM”) equity program financial

"the Company established an at-the-market (“ATM”) equity program with H.C. Wainwright & Co. to sell up to US$5,500 of common shares"

asset retirement obligation financial

"The following assumptions were used to calculate the asset retirement obligation The continuity of the asset retirement obligation"

A liability recorded for the future cost to retire, dismantle or clean up a long-lived asset — for example removing an oil rig, closing a mine, or decommissioning a plant. Investors care because it reduces reported profit and ties up capital: companies must estimate and set aside money now for a known future expense, and changes to that estimate can swing earnings, debt ratios and the company’s cash needs much like setting aside savings to repair or return a rented property later.

Pre-Funded Warrants financial

"The fair value of the Pre-Funded Warrants is the same as the Company’s share price as at the corresponding valuation date."

Pre-funded warrants are financial instruments that give investors the right to purchase a company's stock at a set price, but with most or all of the purchase price paid upfront. They function like a coupon or gift card for stock, allowing investors to buy shares later at a fixed price, which can be beneficial if they want to avoid future price increases. This makes them important for investors seeking flexibility and certainty in their investment plans.

Limited Notice to Proceed financial

"Electra has issued an LNTP to initiate early execution activities while the parties finalize a definitive construction agreement."

A limited notice to proceed is a short, partial green light from a client that lets a contractor begin specific early work—such as site preparation, ordering long‑lead materials, or hiring crews—before the full contract is signed. For investors it signals that a project is moving from planning toward execution, which can accelerate revenue timing but also exposes the company to early costs and schedule risk if the full contract terms change; think of it as starting the foundation before the final building permit paperwork is complete.

fair value through profit or loss financial

"Classification June 30, 2026 Fair value through profit or loss Amortized cost"

An accounting classification for certain financial assets where their current market price is used to update value on the books, and any increase or decrease is recorded immediately in the company’s profit & loss statement. Like checking the daily score of an investment and noting the gain or loss right away, this approach makes reported earnings reflect market swings more quickly, which can increase short-term volatility in reported profits and help investors see real-time value changes.

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

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Available on EDGAR 08/12/2026 - 07:30 AM Accepted by SEC EDGAR 08/12/2026 - 07:30 AM

FAQ

How did Electra Battery Materials (ELBM) perform financially in Q2 2026?

Electra reported Q2 2026 net income of $9,028 versus a $2,005 loss a year earlier. The swing was driven mainly by a $15,233 fair value gain on US warrants, while operating expenses increased modestly to $4,021.

What were Electra Battery Materials’ results for the six months ended June 30, 2026?

For the first half of 2026, Electra posted net income of $37,170 compared with a $14,685 loss in 2025. Results include a $48,541 non‑cash gain on US warrants and an operating loss of $7,864, reflecting ongoing pre‑revenue development.

What is the funding status and budget for Electra’s Ontario cobalt refinery?

The Board approved a US$73 million construction budget to mechanical completion. Electra reports securing about US$82,000 of combined government support and equity financing, but still expects additional working‑capital and ramp‑up funding needs.

Why does Electra Battery Materials have a going concern warning?

Management notes recurring operating losses, negative cash flows, and an accumulated deficit of $371,187, plus reliance on new equity or debt financing. These factors create substantial doubt about Electra’s ability to continue as a going concern without additional funding.

What is Electra Battery Materials’ cash and debt position as of June 30, 2026?

Electra held $35,872 in cash and cash equivalents and $1,208 in long‑term restricted cash. Key liabilities included a $41,302 term loan, $5,549 in government loans, a $2,543 royalty liability and $33,117 of US warrant liabilities.

What Nasdaq compliance issue is Electra Battery Materials facing?

On March 19, 2026, Electra received notice that its share price was below the US$1.00 minimum bid for 30 consecutive business days. The company has until September 14, 2026 to regain compliance while shares continue trading on Nasdaq.

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2026

Commission File Number: 001-41356

Electra Battery Materials Corporation
(Translation of registrant's name into English)

133 Richmond St W, Suite 602
Toronto, Ontario, M5H 2L3 Canada
(416) 900-3891
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F [ X ] Form 40-F [ ]

Incorporation by Reference

The information contained in this Report on Form 6-K (this “Form 6-K”) and Exhibits 99.1 and 99.2 herewith are hereby incorporated by reference as an exhibit to (i) the Registration Statement on Form S-8 (File No. 333-264589), (ii) the Registration Statement on Form F-3, as amended (File No. 333-288364) and (iii) the Registration Statement on Form F-3, as amended (File No. 333-291766) of Electra Battery Materials Corporation (the “Company”).

EXHIBIT INDEX

Exhibit Number		Description

99.1		Condensed Interim Consolidated Financial Statements for the three and six months ended June 30, 2026
99.2		Management’s Discussion and Analysis for the three and six months ended June 30, 2026
99.3		Press Release dated August 12, 2026
99.4		Form 52-109F2 CEO Certification of Interim Filings
99.5		Form 52-109F2 CFO Certification of Interim Filings

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		Electra Battery Materials Corporation
		(Registrant)


Date: August 12, 2026		/s/ Trent Mell
		Trent Mell
		Chief Executive Officer and Director

Exhibit 99.1

ELECTRA BATTERY MATERIALS CORPORATION

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(UNAUDITED)

(EXPRESSED IN THOUSANDS OF CANADIAN DOLLARS)

ELECTRA BATTERY MATERIALS CORPORATION

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

AS AT JUNE 30, 2026 AND DECEMBER 31, 2025

(expressed in thousands of Canadian dollars)

	June 30, 2026			December 31, 2025 (audited)
ASSETS
Current Assets
Cash and cash equivalents	$	35,872		$	39,024
Prepaid expenses and deposits		2,389			812
Receivables (Note 4)		860			666
		39,121			40,502
Non-Current Assets
Exploration and evaluation assets (Note 6)		92,042			88,776
Property, plant and equipment (Note 5)		63,885			55,078
Long-term restricted cash		1,208			1,208
Total Assets	$	196,256		$	185,564

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable and accrued liabilities	$	7,364		$	5,817
US warrants (Note 11)		33,117			81,658
Lease liability		50			55
Deferred government grant (Note 8)		3,946			642
		44,477			88,172
Non-Current Liabilities
Term loan (Note 10)		41,302			38,168
Government loan payable (Note 8)		5,549			5,196
Government grants (Note 8)		3,124			3,124
Royalty (Note 9)		2,543			2,338
Lease liability		4			27
Asset retirement obligations (Note 7)		1,957			2,289
Total Liabilities	$	98,956		$	139,314
Shareholders’ Equity
Common shares (Note 12)		429,076			419,966
Reserves (Note 13)		34,660			33,143
Accumulated other comprehensive income		4,751			1,498
Deficit		(371,187	)		(408,357	)
Total Shareholders’ Equity	$	97,300		$	46,250
Total Liabilities and Shareholders’ Equity	$	196,256		$	185,564

Going concern (Note 1)
Commitments and contingencies (Note 18)

Subsequent events (Note 21)

Approved on behalf of the Board of Directors and authorized for issue on August 11, 2026

Alden Greenhouse, Director		Trent Mell, Director

See accompanying notes to condensed interim consolidated financial statements.

Page 2 of 27

ELECTRA BATTERY MATERIALS CORPORATION

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND OTHER COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

	For the three months ended June 30,						For the six months ended June 30,
	2026			2025			2026			2025
Operating expenses
General and administrative	$	792		$	723		$	1,604		$	1,766
Consulting and professional fees		1,224			1,067			2,408			2,068
Exploration and evaluation expenditures		90			48			145			89
Investor relations and marketing		457			119			600			211
Salaries and benefits		1,065			1,298			1,909			2,550
Share-based payments (Note 13)		393			228			1,198			555
Operating loss:		4,021			3,483			7,864			7,239
Other
Unrealized gain on marketable securities		-			-			-			4
Gain (loss) on financial derivative liability – Convertible Notes		-			231			-			(4,836	)
Changes in fair value of US warrants (Note 11)		15,233			(100	)		48,541			(100	)
Other non-operating income (loss) (Note 14)		(2,184	)		1,347			(3,507	)		(2,514	)
Net income (loss)	$	9,028		$	(2,005	)	$	37,170		$	(14,685	)

Other comprehensive income (loss):
Fair value adjustment of 2028 Notes and 2027 Notes due to own credit risk					(82	)		-			1,798
Foreign currency translation gain (loss)		1,755			(4,746	)		3,253			(4,813	)

Net income (loss) and other comprehensive income (loss)	$	10,783		$	(6,833	)	$	40,423		$	(17,700	)
Basic income (loss) per share (Note 15)	$	0.09		$	(0.11	)	$	0.36		$	(0.90	)
Weighted average number of common shares outstanding - Basic (Note 15)		105,174,158			17,807,021			103,673,897			16,317,480
Diluted income (loss) per share (Note 15)	$	0.08		$	(0.11	)	$	0.24		$	(0.90	)
Weighted average number of common shares outstanding - Diluted (Note 15)		132,030,530			17,807,021			130,544,990			16,317,480

See accompanying notes to condensed interim consolidated financial statements.

Page 3 of 27

ELECTRA BATTERY MATERIALS CORPORATION

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (UNAUDITED)

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

			Common Shares
	Number of shares		Amount		Reserves			Accumulated Other Comprehensive Income			Deficit			Total
Balance – January 1, 2026		98,982,239	$	419,966	$	33,143		$	1,498		$	(408,357	)	$	46,250
Other comprehensive earnings for the period, net of taxes		-		-		-			3,253			-			3,253
Net income for the period		-		-		-			-			37,170			37,170
Share-based payment expense		-		-		1,178			-			-			1,178
Directors’ fees paid in deferred share units		-		-		418			-			-			418
Exercise of deferred share units (Note 13)		21,487		79		(79	)		-			-			-
Shares issued for cash net of transaction costs of $363 (Note 12)		7,743,900		8,991		-			-			-			8,991
Shares issued for employee share purchase plan (Note 13)		52,512		40		-			-			-			40
Balance – June 30, 2026		106,800,138	$	429,076	$	34,660		$	4,751		$	(371,187	)	$	97,300

Balance – January 1, 2025		14,809,197	$	307,723	$	26,848		$	4,639		$	(274,892	)	$	64,318
Other comprehensive earnings for the period, net of taxes		-		-		-			(3,015	)		-			(3,015	)
Net loss for the period		-		-		-			-			(14,685	)		(14,685	)
Share-based payment expense		-		-		555			-			-			555
Directors’ fees paid in deferred share units		-		-		48			-			-			48
Exercise of restricted share units and warrants (Note 12)		27,975		88		(86	)		-			-			2
Private placement, net of transaction costs of $337 (Note 12)		3,125,000		3,421		109			-			-			3,530
Balance – June 30, 2025		17,962,172	$	311,232	$	27,474		$	1,624		$	(289,577	)	$	50,753

See accompanying notes to condensed interim consolidated financial statements.

Page 4 of 27

ELECTRA BATTERY MATERIALS CORPORATION

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

	For the six months ended June 30,
	2026			2025
Operating activities
Net income (loss)	$	37,170		$	(14,685	)
Adjustments for items not affecting cash:
Share-based payments		1,198			603
Change in fair value of marketable securities		-			(4	)
Realized gain on marketable securities		-			(1	)
Depreciation (Note 5)		65			29
Accretion (Notes 7, 8, 9 and 10)		837			320
Director’s fees paid in DSU		418			-
Interest expense on convertible 2028 and 2027 Notes		-			5,730
Changes in fair value of convertible 2028 Notes and 2027 Notes		-			5,914
Interest expense on term loan (Note 10)		2,152			-
Fair value warrants 2028 Notes		-			(1,078	)
Changes in fair value of US warrants (Note 11)		(48,541	)		100
Gain on extinguishment of government loan		(41	)		-
Unrealized (gain) loss on foreign exchange		705			(3,593	)
	$	(6,037	)	$	(6,665	)
Changes in working capital:
(Increase) decrease in receivables		(194	)		857
(Increase) decrease in prepaid expenses and other assets		(1,577	)		(222	)
Increase (decrease) in accounts payable and accrued liabilities		18			1,314
Cash used in operating activities	$	(7,790	)	$	(4,716	)

Investing activities
Proceeds from sale of marketable securities		-			13
Additions to property, plant and equipment (Note 5)		(7,633	)		(702	)
Cash used in investing activities	$	(7,633	)	$	(689	)

Financing activities
Proceeds from non-brokered private placement, net of transaction costs $337 (Note 12)		-			4,679
Repayment of government loans (Note 8)		-			(18	)
Proceeds from ATM – net of transaction costs of $363 (Note 12)		8,991			-
Proceeds from ESPP (Note 13)		20			-
Payment of lease liability, net of interest		(31	)		(65	)
Proceeds from deferred government grant		3,304			-
Cash provided by financing activities	$	12,284		$	4,596
Change in cash during the period		(3,139	)		(809	)
Effect of exchange rates		(13	)		19
Cash, beginning of the period		39,024			3,717
Cash, end of period	$	35,872		$	2,927

See accompanying notes to condensed interim consolidated financial statements.

Page 5 of 27

ELECTRA BATTERY MATERIALS CORPORATION

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

Nature of Operations

Electra Battery Materials Corporation (the “Company”, “Electra”) was incorporated on July 13, 2011 under the Business Corporations Act of British Columbia (the “Act”). On September 4, 2018, the Company filed a Certificate of Continuance into Canada and adopted Articles of Continuance as a Federal Company under the Canada Business Corporations Act (the “CBCA”). On December 6, 2021, the Company changed its corporate name from First Cobalt Corp. to Electra Battery Materials Corporation. The Company is in the business of producing battery materials for the electric vehicle supply chain. The Company is currently in the process of building a refinery focused on the supply of cobalt, nickel and recycled battery materials.

Electra is a public company which is listed on the Toronto Venture Stock Exchange (“TSXV”) (under the symbol ELBM) and on the NASDAQ (under the symbol ELBM). The Company’s registered office is 40 Temperance Street, Suite 3200, Bay Adelaide Centre – North Tower, Toronto, Ontario, Canada M5H 0B4 and the corporate head office is located at 133 Richmond Street W, Suite 602, Toronto, Ontario, M5H 2L3.

The Company is focused on building a North American integrated battery materials facility for the electric vehicle supply chain. The Company is in the process of constructing its expanded hydrometallurgical cobalt refinery (the “Refinery”) in Ontario, Canada, assessing the various optimizations and modular growth scenarios for a recycled battery material (known as black mass) program, and exploring and developing its mineral properties.

Going Concern Basis of Accounting

The accompanying condensed interim consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the foreseeable future, and, as such, the condensed interim consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.

The Company has recurring net operating losses and negative cash flows from operations. As of June 30, 2026 and December 31, 2025, the Company had an accumulated deficit of $371,187 and $408,357, respectively. The Company’s recurring losses from operations and negative cash flows raise substantial doubt about the Company’s ability to continue as a going concern. The global economy, including the financial and credit markets, have experienced volatility and disruptions, including fluctuating inflation rates and interest rates, foreign currency impacts, declines in consumer confidence, and declines in economic growth. These factors point to uncertainty about economic stability, and the severity and duration of these conditions on our business cannot be accurately predicted, and the Company cannot assure that it will remain in compliance with the financial covenants contained within its credit facilities.

Management monitors recent developments in relation to global tariffs and does not anticipate material impacts on the financial position of the Company.

In order to continue its operations, the Company must achieve profitable operations and/or obtain additional equity or debt financing. Until the Company achieves profitability, management plans to fund its operations and capital expenditures with cash on hand, borrowings, and issuance of capital stock. Until the Company generates revenue at a level to support its cost structure, the Company expects to continue to incur operating losses and net cash outflows from operating activities.

Page 6 of 27

ELECTRA BATTERY MATERIALS CORPORATION

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

During the year ended December 31, 2025, the Company completed private placements and raised US$38,000 in gross proceeds from issuance of common shares and warrants, as detailed in Note 12 and completed restructuring transaction with its 2028 and 2027 noteholders. In addition, during the six months ended June 30, 2026, the Company raised proceeds of approximately $8,991, net of transactions costs under its At The Market Offering Agreement (“ATM”).

Although the Company has historically been successful in obtaining financing in the past, there can be no assurances that the Company will be able to obtain adequate financing in the future. These condensed interim consolidated financial statements do not include the adjustments to the amounts and classifications of assets and liabilities that would be necessary should the Company be unable to continue as a going concern. These adjustments may be material.

Material Accounting Policies and Basis of Preparation

Basis of Preparation and Statement of Compliance

The Company prepares its condensed interim consolidated financial statements in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (“IASB”). These condensed interim consolidated financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting (“IAS 34”). These condensed interim consolidated financial statements should be read in conjunction with our most recent annual financial statements. These condensed interim consolidated financial statements follow the same accounting policies, estimates, and methods of application as our most recent annual financial statements.

All amounts other than share and per share information on the condensed interim consolidated financial statements are presented in thousands of Canadian dollars unless otherwise stated. The condensed interim consolidated financial statements were authorized for issue by the Board of Directors on August 11, 2026.

New Accounting Standards Issued

A number of new standards, and amendments to standard and interpretations, are not yet effective for the current period, and have not been early adopted in preparing these condensed interim consolidated financial statements.

In May 2024, the IASB issued amendments to IFRS 9 and IFRS 7 Classification and Measurement of Financial Instruments. These amendments clarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system; add new disclosures for certain instruments with contractual terms that can change cash flows (such as some instruments with features linked to the achievement of environment, social and governance targets); and update the disclosures for equity instruments designated at fair value through other comprehensive income. These amendments apply to annual reporting periods beginning on or after January 1, 2026. The Company adopted these amendments on January 1, 2026 and they did not have material impact on the Company’s consolidated financial statements.

In April 2024, the IASB issued IFRS 18 Presentation and Disclosure in Financial Statements to improve reporting of financial performance. IFRS 18 replaces IAS 1 Presentation of Financial Statements. It carries forward many requirements from IAS 1. IFRS 18 applies to annual reporting periods beginning on or after January 1, 2027. Earlier application is permitted. The standard must be applied retrospectively with restatement of comparative information. The key new concepts introduced in IFRS 18 relate to: the structure of the statement of profit or loss; required disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity’s financial statements; and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes. The Company is currently assessing the impact and efforts related to adopting IFRS 18. The Company expects the standard will primarily affect the presentation and disclosure of information within these consolidated financial statements.

Page 7 of 27

ELECTRA BATTERY MATERIALS CORPORATION

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

Other accounting standards or amendments to existing accounting standards that have been issued but have future effective dates and are not expected to have a significant impact on the Company’s consolidated financial statements.

Receivables

	June 30, 2026		December 31, 2025
GST receivables	$	769	$	505
Grant receivables		-		146
Other		91		15
	$	860	$	666

Property, Plant and Equipment

Cost	Property, Plant and Equipment			Construction in Progress		Right-of-use Assets		Total
January 1, 2025	$	7,072		$	43,987		301	$	51,360
Additions during the period		364			4,128		-		4,492
Transfers to capital long-term prepayments		-			139		-		139
Asset retirement obligation - Change in estimate		(646	)		-		-		(646	)
Balance December 31, 2025	$	6,790		$	48,254		301	$	55,345
Additions during the period		-			9,278		-		9,278
Asset retirement obligation - Change in estimate		(406	)		-		-		(406	)
Balance June 30, 2026	$	6,384		$	57,532		301	$	64,217
Accumulated Depreciation
January 1, 2025	$	10		$	-		161	$	171
Change for the period		38			-		58		96
Balance December 31, 2025	$	48		$	-		219	$	267
Change for the period		36			-		29		65
Balance June 30, 2026	$	84		$	-		248	$	332
Net Book Value
Balance December 31, 2025	$	6,742		$	48,254		82	$	55,078
Balance June 30, 2026	$	6,300		$	57,532		53	$	63,885

Majority of the Company’s property, plant, and equipment assets relate to the Refinery located near Temiskaming Shores, Ontario, Canada. The Department of Defense (“DoD”) retains title to certain construction in progress assets (Note 8) the remaining property, plant and equipment and construction in progress are pledged as security for the term loan (Note 10).

Page 8 of 27

ELECTRA BATTERY MATERIALS CORPORATION

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

During the six months ended June 30, 2026, the Company capitalized borrowing costs of $116 (December 31, 2025 – $Nil) using a weighted average capitalization rate of 13%.

Exploration and Evaluation Assets

		January 1, 2025				Foreign Exchange				December 31, 2025				Foreign Exchange				June 30, 2026
Idaho, USA		$	93,200			$	(4,424	)		$	88,776			$	3,266			$	92,042

All of the Iron Creek mineral properties are pledged as security for the term loan. Upon successful commissioning of the Refinery, the Iron Creek mineral properties will be released from the term loan security package.

Certain claims relating to the Iron Creek properties were acquired by the Company against earn-in and option agreements entered with the original owners of such claims. These agreements provide a working interest in the property to the Company, upon making certain milestone payments and/or incurring certain expenditures on the property.

Asset Retirement Obligation

As at June 30, 2026, the estimated cost of closure is $3,490. The Company maintains a surety bond for $3,450 as financial assurance based on the October 2021 closure plan. The closure plan was filed and accepted in March 2022 and updated in November 2022.

The full estimated closure cost in the latest closure plan incorporated a number of new disturbances that have yet to take place, such as new roadways, new chemicals on site, and a new tailings area.

The latest closure plan also included cost updates relating to remediating disturbances that existed at June 30, 2026. The following assumptions were used to calculate the asset retirement obligation:

Discounted cash flows of $1,957 (December 31, 2025 - $2,289);

Closure activities date in year 2073 (December 31, 2025 – 2073);

Risk-free discount rate of 3.77% (December 31, 2025 – 3.84%); and

Long-term inflation rate of 2.5% (December 31, 2025 – 3.0%).

The continuity of the asset retirement obligation at June 30, 2026 and December 31, 2025 are as follows:

	June 30, 2026			December 31, 2025
Balance at January 1,	$	2,289		$	2,842
Change in estimate from discounting and estimate of costs		(406	)		(646	)
Accretion		74			93
Balance	$	1,957		$	2,289

Page 9 of 27

ELECTRA BATTERY MATERIALS CORPORATION

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

Long-Term Government Loan Payable, Grants and Awards

On November 24, 2020, the Company entered into a contribution agreement with the Ministry of Economic Development and Official Languages as represented by the Federal Economic Development Agency for Northern Ontario (“FedNor”) for up to $5,000 financing related to the recommissioning and expansion of the Refinery in Ontario. The contribution was in the form of debt bearing a 0% interest rate and funded in proportion to certain Refinery construction activities. The Company received approval for an additional $5,000 funding under the agreement on December 27, 2023, which was fully received during the year ended December 31, 2024.

Once construction is completed, the cumulative balance borrowed will be repaid in 19 equal quarterly instalments. The loan was discounted using a market rate between 7.0% and 17.1% with the resulting difference between the amortized cost and cash proceeds recognized as Government Grant. The FedNor loan required completion of the construction on or before June 30, 2025. On July 14, 2025, the completion of construction required by FedNor was extended to June 30, 2027 and governmental loans repayment commencement date was changed from June 2026 to June 2028.

The Company accounted for the extension of the repayment commencement date as an extinguishment of the original financial liability and recognized a new financial liability for the new extended loans. The extinguishment of original loans and recognition of amended loans resulted in a gain on extinguishment of $3,311 as at December 31, 2025 and $41 as at June 30, 2026, which has been recognized in Other non-operating loss in the statement of income (loss) and other comprehensive income (loss). The fair value of the amended loan was estimated using fair market interest rate of 16%.

On June 10, 2024, the Company received $5,000 in contribution funding from Natural Resources Canada (“NRCan”) to support the development of its proprietary battery materials recycling technology.

On August 19, 2024, the Company was awarded US$20,000 by the DoD. The award was made pursuant to Title III of the Defense Production Act (“DPA”) to expand domestic production capability.

Reimbursement received from DoD as at June 30, 2026 totals $3,946 (December 31, 2025 - $642). Once the conditions of the agreement are met the deferred government grant will be derecognized against the corresponding assets.

On March 31, 2026, the Company signed a binding investment agreement (the “Investment”) with the Government of Canada under the Strategic Response Fund (“SRF”). The Investment provides for total federal funding of up to $20,000 toward eligible project costs, consisting of a non-repayable contribution of 25% of the total funding and a repayable contribution of up to 75%. The repayable portion is subject to a 15-year repayment term commencing in 2030 and bears interest based on a formula tied to the Company’s financial performance and other factors. As at June 30, 2026, no funds had been received.

Page 10 of 27

ELECTRA BATTERY MATERIALS CORPORATION

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

The following table sets out the balances of Government Loan and Government Grant received at June 30, 2026 and December 31, 2025:

	Government Loan			Government Grant		Total
Balance at January 1, 2025	$	7,824		$	3,124	$	10,948
FedNor Loan (Nickel Study) - Payment		(27	)		-		(27	)
Accretion		368			-		368
Extinguishment of government loans		(8,017	)		-		(8,017	)
Recognition of new government loans due to extension of repayment commencement date		4,706			-		4,706
Accretion		342			-		342
Balance at December 31, 2025	$	5,196		$	3,124	$	8,320
Accretion		394			-		394
Extinguishment of government loans		(155	)		-		(155	)
Recognition of new government loans due to extension of repayment commencement date		114			-		114
Balance at June 30, 2026	$	5,549		$	3,124	$	8,673

Royalty

On October 22, 2025, the Company entered into amended and restated royalty agreements resulting in an extinguishment of the previous royalty liability. The fair value of the amended Royalty was estimated at October 22, 2025 using a discounted cash flow model. The key inputs included the market interest rate of 11.125% and cash flows estimates of future operating and gross revenues. During the year ended December 31, 2025, the loss on extinguishment amounting to $1,023 was included in other non-operating income (expense) in the condensed interim consolidated statement of income (loss) and other comprehensive income (loss).

	June 30, 2026		December 31, 2025
Balance at January 1,	$	2,338	$	1,283
Foreign exchange		-		(37	)
Accretion		-		58
Extinguishment of royalty		-		(1,304	)
Foreign exchange		78		(37	)
Recognition of new royalty due to amendment		-		2,327
Accretion		127		48
Balance	$	2,543	$	2,338

10.

Term Loan

The Term Loan issued in debt exchange of the convertible notes had an initial principal amount of $38,902 (US$27,795) and matures on October 22, 2028. The Term Loan bears interest on the unpaid principal amount at 8.99% per annum if paid by cash with payment every quarter.

The Company may elect to have, with respect to interest accrued on and to each interest payment date, all interest on the Term Loan being added to the outstanding principal amount of the Term Loan at a rate equal to 11.125% per annum (such capitalized interest, “PIK Interest”). All such PIK Interest shall thereafter constitute principal and bear interest on the terms of the Term Loan. The Term Loan is secured by a first priority security interest (subject to customary permitted liens) in substantially all of the Company’s assets.

Page 11 of 27

ELECTRA BATTERY MATERIALS CORPORATION

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

The Term Loan is subject to customary events of default and basic positive and negative covenants. The Company is required to maintain a minimum liquidity balance of US$15,000 until it secures signed, binding commitments from the Government of Canada and from the Government of Ontario, after which the requirement is US$2,000. This requirement was met as of July 31, 2026 as described in Note 21. The Term Loan was measured at fair value on the extinguishment date of October 22, 2025 and was subsequently classified and measured at amortized cost. The fair value of the Term Loan on October 22, 2025 was estimated at $37,258 based on the finite difference valuation model, which included 12.8% market interest rate.

The Term Loan is accreted through the term of the Term Loan using an effective interest rate of 12.8%. During the three and six months ended June 30, 2026, the Company recorded $1,166 and $2,267, respectively of interest and $123 and $239 accretion expenses, respectively (For the three and six months ended June 30, 2025 - $Nil and $Nil) and loss in foreign exchange of $763 and $627, respectively. Included in the interest for the six-month period was $116 that was capitalized as borrowing costs related to the construction of qualifying assets.

11.

US Warrants

2026 Warrants

On April 3 and April 14, 2025, the Company issued 3,125,000 (“2026 Warrants”) to subscribers in a non-brokered private placement (Note 12). The warrant exercise price is denominated in US dollars, a currency different than the Company’s functional currency.

Therefore, the warrants were classified as a financial liability in the condensed interim consolidated statements of financial position. During the year ended December 31, 2025, the fair value of the warrants was estimated using the Black Scholes Option Pricing Model, using the following main inputs: volatility of 85% on issuance date, 61.79% - 121.59% on exercise dates, and 125% - 127.6% on December 31, 2025, share price of $1.38 - $1.50 on issuance date, $1.37 - $6.55 on exercise dates, and $1.11 on December 31, 2025 and risk-free rate of 2.40% - 2.58% on issuance date, 2.38% - 2.48% on exercise date, and 2.55% December 31, 2025, respectively.

The fair value of the warrants was estimated using the Black Scholes Option Pricing Model using the following main inputs on June 30, 2026: volatility of 49.7% - 50.1%, share price of $0.87 and risk-free rate of 2.72%.

The table below presents changes in 2026 Warrants during the year ended December 31, 2025 and for the six months ended June 30, 2026:

Page 12 of 27

ELECTRA BATTERY MATERIALS CORPORATION

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

	Number of warrants			Fair value
Balance at January 1, 2025		-		$	-
Issued		3,125,000			1,150
Changes in fair value		-			8,112
Exercised		(2,481,786	)		(9,066	)
Balance at December 31, 2025		643,214		$	196
Changes in fair value		-			(196	)
Balance at June 30, 2026		643,214		$	-

The changes in fair value amounting to $(196) (December 31, 2025 – $8,112) was included in changes in fair value of US warrants in the condensed interim consolidated statement of income (loss) and other comprehensive income (loss).

Pre-Funded Warrants

The fair value of the Pre-Funded Warrants is the same as the Company’s share price as at the corresponding valuation date. The table below presents changes in Pre-Funded Warrants during the year ended December 31, 2025 and for the six months ended June 30, 2026:

	Number of warrants			Fair value
Balance at January 1, 2025		-		$	-
Issued		31,735,657			73,309
Changes in fair value		-			(36,698	)
Exercised		(5,330,000	)		(7,302	)
Balance at December 31, 2025		26,405,657		$	29,309
Changes in fair value		-			(6,336	)
Balance at June 30, 2026		26,405,657		$	22,973

The changes in fair value amounting to $(6,336) (December 31, 2025 - $(36,698)) was included in changes in fair value of US warrants in the condensed interim consolidated statement of income (loss) and other comprehensive income (loss).

New Equity Offering Warrants

The fair value of the warrants was estimated using the Black Scholes Option Pricing Model using the following main inputs on June 30, 2026: volatility of 51.0%, share price of $0.87 and risk-free rate of 2.72%.

The table below presents changes in New Equity Offering Warrants during the year ended December 31, 2025 and for the six months ended June 30, 2026:

Page 13 of 27

ELECTRA BATTERY MATERIALS CORPORATION

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

	Number of warrants		Fair value
Balance at January 1, 2025		-	$	-
Issued equity exchange		55,041,712		79,562
Issued in equity offering		46,000,000		18,597
Changes in fair value		-		(46,006	)
Balance at December 31, 2025		101,041,712	$	52,153
Changes in fair value		-		(42,009	)
Balance at June 30, 2026		101,041,712	$	10,144

The changes in fair value amounting to $(42,009) (December 31, 2025 - $(46,006)) was included in changes in fair value of US warrants in the consolidated statement of income (loss) and other comprehensive income (loss).

2028 Warrants

On October 22, 2025, the Company cancelled the previously issued 2028 Warrants as part of the exchange agreement in which the convertible notes were equitized.

The table below presents changes in 2026 Warrants, Pre-Funded Warrants and New Equity Offering Warrants during the year ended December 31, 2025 and for the six months ended June 30, 2026:

	Number of warrants			Fair value
Balance at January 1, 2025		-		$	-
Issued equity exchange		135,902,369			172,618
Changes in fair value		-			(74,592	)
Exercised		(7,811,786	)		(16,368	)
Balance at December 31, 2025		128,090,583		$	81,658
Changes in fair value		-			(48,541	)
Balance at June 30, 2026		128,090,583		$	33,117

12.

Shareholder’s Equity

Authorized Share Capital

The Company is authorized to issue an unlimited number of common shares without par value. As at June 30, 2026, the Company had 106,800,138 (December 31, 2025 – 98,982,239) common shares outstanding.

Issued Share Capital

During the six months ended June 30, 2026, the Company issued common shares as follows:

The Company issued 7,743,900 common shares at a weighted average price of $1.21 for gross proceeds of approximately $9,354 under its At The Market Offering Agreement (“ATM”). The transaction costs associated with these issuances were $363. On February 20, 2026, the Company upsized the ATM program to US$25,000, providing additional financial flexibility to fund working capital and expenditures related to refinery commissioning.

Page 14 of 27

ELECTRA BATTERY MATERIALS CORPORATION

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

The Company issued 21,487 common shares for the exercise of DSUs.

52,512 common shares were issued under the ESPP for proceeds of $20.

During the year ended December 31, 2025, the Company issued common shares as follows:

5,330,000 Pre-Funded Warrants were exercised for a nominal exercise price (Note 11). The exercised Pre-Funded Warrants were measured at $7,302 on the exercise date which was recognized in share capital in the consolidated statements of shareholders’ equity.

2,481,786 2026 Warrants were exercised for total proceeds of $4,894. The exercised 2026 Warrants were measured at $9,066 on the exercise date which was recognized in share capital in the consolidated statements of shareholders’ equity.

65,544 broker warrants were exercised for total proceeds of $103. The exercised 2026 Warrants were measured at $42 on the exercise date which was recognized in share capital in the consolidated statements of shareholders’ equity.

The Company issued 26,975 and 15,340 common shares for the exercise of restricted shares and stock options for total proceeds of $39.

On April 14, 2025, the Company closed the first (occurring on April 3, 2025) and second tranches of its non-brokered private placement, raising aggregate gross proceeds of US$3,500 ($4,908). An aggregate of 3,125,000 units (each, a “Unit”) were issued at a price of US$1.12 per Unit under the private placement. Each Unit consists of one common share in the capital of the Company and one transferable common share purchase warrant (“2026 Warrants”), with each warrant entitling the holder to purchase one common share of the Company at a price of US$1.40 at any time for a period of eighteen (18) months following the issue date. In connection with the closing of the Offering, the Company incurred aggregate finders’ fees of $337, including $109 representing the value of 183,333 non-transferable finders’ warrants. Each finders’ warrant is exercisable to acquire one common share of the Company at an exercise price of US$1.12 until October 14, 2026. Finders’ warrants were measured at $109 using the Black-Scholes option pricing model with the following main assumptions: share price $1.50, volatility 85.0%, risk free rate 2.58%.

The gross proceeds were allocated between common shares and 2026 Warrants, based on relative fair values and 2026 Warrants were allocated $1,150 on initial recognition. The residual balance of $3,759 was then allocated to the equity component (common shares issued). The transaction costs of $447 were allocated proportionately between the 2026 Warrants and the common shares. Transaction costs allocated to the common shares were accounted for as a deduction from equity of $338.

Concurrently with the completion of the Equity Exchange, the Company completed New Equity Offering of 46,000,000 New Equity Offering Units, each consisting of one common share and one New Equity Offering Warrants to purchase one common share at a price of US$0.75 per New Equity Offering Unit. Each New Equity Offering Warrants or the 2028 Warrants entitling the holder thereof to purchase one common share at a price of US$1.25 for a period commencing on the date that is 60 days following the completion of the offering until October 22, 2028, Note 11.

Page 15 of 27

ELECTRA BATTERY MATERIALS CORPORATION

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

The Company incurred an aggregate cash commission of US$1,851 to the agents of the New Equity Offering. The Company also issued an aggregate of 2,416,884 non-transferable warrants to purchase common shares to the agents (the “Broker Warrants”). Each Broker Warrant entitles the holder to acquire one Common Share at US$0.75 per share, at any time on or before the date that is 36 months following the closing date of the New Equity Offering.‎ Broker warrants were measured at $4,604 using the Black-Scholes option pricing model with the following main assumptions: share price $2.31, volatility 124.31%, risk free rate 2.39%.

The gross proceeds were allocated between common shares and New Equity Offering Warrants, based on relative fair values and New Equity Offering Warrants were allocated $18,597 on initial recognition. The residual balance of $29,720 was then allocated to the equity component (common shares issued). The transaction costs of $8,240 were allocated proportionately between the New Equity Offering Warrants and common shares. Transaction costs allocated to the equity component were accounted for as a deduction from equity of $5,078.

13.

Share Based Payments

The Company adopted a long-term incentive plan (“LTIP”) on December 20, 2024, whereby it can grant stock options, restricted share units (“RSUs”), Deferred Share Units (“DSUs”), and Performance Share Units (“PSUs”) to directors, officers, employees, and consultants of the Company. The maximum number of shares that may be reserved for issuance under the LTIP is 10,990,784.

In 2024, the Company was approved to implement an employee share purchase plan (“ESPP”) to provide its employees an incentive to promote performance and growth potential over the long-term. The Company has reserved 400,000 common shares that can be issued under the ESPP. Under the ESPP, employees are allowed to designate up to 10% of their base salary to purchase shares of the Company at a price equal to the volume weighted average price of the Company's share traded on the exchange for the five consecutive trading days prior to the acquisition. The Company will contribute one dollar for each dollar contributed by an employee to purchase the Company's shares for and on behalf of the employee. The Company may satisfy this contribution through the issuance of the Company's shares from treasury. For the six months ended June 30, 2026, 52,512 common shares were issued under the ESPP for proceeds of $20 and the Company’s contribution of $20 was recorded as share-based payments in the condensed interim consolidated statements of income (loss) and other comprehensive income (loss) (June 30, 2025 - $nil).

The grant date fair value is determined using the Black-Scholes Option Pricing Model and this value is recognized as an expense over the vesting period. DSUs generally vest in one year but cannot be exercised until the holder ceases to be a director or officer of the Company. DSUs are valued based on the market price of the Company’s common shares on the grant date. PSUs generally vest over 18 – 24 months if certain performance metrics have been achieved. They are valued based on the market price of the Company’s shares on the grant date and this value is expensed over the vesting period. RSUs generally vest over 12 – 36 months. They are valued based on the market price of the Company’s shares on the grant date and this value is expensed over the vesting period.

Page 16 of 27

ELECTRA BATTERY MATERIALS CORPORATION

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

Stock Options

During the six months ended June 30, 2026:

On March 31, 2026, the Company issued 110,000 incentive stock options to an employee and consultant. The stock options are exercisable for three years at $0.81 and will vest in two equal tranches, on the first and second anniversary of the grant date. The fair value of the options at the date of the grant was $65 using the Black-Scholes Option Pricing Model, assuming a risk-free rate of 2.87% per year, an expected life of 3 years, expected volatility based on historical prices of 125%, no expected dividends and a share price of $0.81. The grant of these stock options was conditional upon approval by the shareholders and TSX Venture Exchange of amendments to increase the participation limits under the LTIP. On June 23, 2026, the shareholders approved the stock option grants and the amendments to increase the participation limits under the Company's LTIP at the Annual General and Special Meeting of Shareholders.

During the year ended December 31, 2025:

On October 29, 2025, upon approval by shareholders at the annual general meeting on June 24, 2025, Electra issued 2,669,000 incentive stock options, 179,000 RSUs, and 271,000 DSUs to certain directors, officers, employees, and contractors. The stock options are exercisable for three years at $1.97 and will vest in two equal tranches, on the first and second anniversary of the grant date. The fair value of the options at the date of the grant was $3,835 using the Black-Scholes Option Pricing Model, assuming a risk-free rate of 2.36% per year, an expected life of 3 years, expected volatility based on historical volatility of 125%, no expected dividends and a share price of $1.97.

The RSUs will vest in two equal tranches on the first and second anniversaries of the grant date and may be settled in cash or shares at the discretion of the Company. The DSUs will be settled in shares when the holder ceases to serve as a director.

During the year ended December 31, 2025, 15,340 stock options were exercised for total proceeds of $39.

On January 1, 2025, the Company granted 125,000 stock options at an exercise price of $2.60 that will vest in two equal tranches on the first and second anniversaries of the grant date. The fair value of the options at the date of grant was $190 using the Black-Scholes Option Pricing Model, assuming a risk-free rate of 2.87% per year, expected life of 3 years, expected volatility based on historical volatility of 90.0%, no expected dividends and a share price of $2.60.

Page 17 of 27

ELECTRA BATTERY MATERIALS CORPORATION

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

The changes in incentive stock options outstanding are summarized as follows:

	Exercise price		Number of shares issued or issuable on exercise
Balance at January 1, 2025	$	4.61		1,170,363
Granted		2.00		2,794,000
Expired		12.94		(21,297	)
Exercised (Share price at $2.31)		2.57		(15,340	)
Forfeited / Cancelled		1.97		(16,000	)
Balance at December 31, 2025	$	2.72		3,911,726
Granted		0.81		110,000
Expired		4.92		(69,791	)
Forfeited / Cancelled		2.04		(534,500	)
Balance at June 30, 2026	$	2.74		3,417,435

Incentive stock options outstanding and exercisable (vested) at June 30, 2026 are summarized as follows:


		Options Outstanding						Options Exercisable
Exercise price		Number of shares issuable on exercise		Weighted average remaining life (Years)		Weighted average exercise price		Number of shares issuable on exercise		Weighted average exercise price
$	0.81		110,000		2.75	$	0.81		-	$	0.81
	1.97		2,181,000		2.33		1.97		-		1.97
	2.00		16,667		1.55		2.00		11,111		2.00
	3.24		746,917		1.22		3.24		746,916		3.24
	3.28		250,000		1.16		3.28		250,000		3.28
	9.60		56,423		0.49		9.60		56,423		9.60
	18.52		15,000		0.83		18.52		15,000		18.52
	21.60		41,428		0.49		21.60		41,428		21.60
	Total		3,417,435		1.98	$	2.74		1,120,878	$	4.44

During the six months ended June 30, 2026, the Company expensed $1,091 (the six months ended June 30, 2025 - $545) for options valued at share prices $0.81 to $21.60 as share-based payment expense.

Page 18 of 27

ELECTRA BATTERY MATERIALS CORPORATION

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

Incentive stock options outstanding and exercisable (vested) at December 31, 2025 are summarized as follows:


		Options Outstanding						Options Exercisable
Exercise price		Number of shares issuable on exercise		Weighted average remaining life (Years)		Weighted average exercise price		Number of shares issuable on exercise		Weighted average exercise price
$	1.97		2,653,000		2.83	$	1.97		-	$	1.97
	2.00		16,667		2.04		2.00		-		2.00
	2.60		125,000		2.00		2.60		-		2.60
	3.24		746,916		2.12		3.24		369,955		3.24
	3.28		250,000		1.66		3.28		250,000		3.28
	9.60		56,423		1.19		9.60		37,616		9.60
	12.84		15,000		1.86		12.84		15,000		12.84
	21.60		41,428		1.05		21.60		41,428		21.60
	24.84		7,292		0.29		24.84		7,292		24.84
	Total		3,911,726		2.52	$	2.72		721,291	$	5.06

During the year ended December 31, 2025, the Company expensed $1,412 (the year ended December 31, 2024 - $1,212) for options valued at share prices $1.94 to $24.84 as share-based payment expense.

(b)

DSUs, RSUs and PSUs

During the six months ended June 30, 2026, the Company has expensed $418 (the year ended December 31, 2025 - $254) for DSUs and $87 (the year ended December 31, 2025 - $41) for RSUs as share-based payment expense.

Deferred Shares Units

The Company’s DSUs outstanding at June 30, 2026 and December 31, 2025 were as follows:

Number of Units	June 30, 2026			December 31, 2025
Balance at January 1,		428,085			157,085
Granted		251,913			271,000
Exercised		(21,487	)		-
Balance		658,511			428,085

Page 19 of 27

ELECTRA BATTERY MATERIALS CORPORATION

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

Restricted Share Units

The Company’s RSUs outstanding at June 30, 2026 and December 31, 2025 were as follows:

Number of Units	June 30, 2026		December 31, 2025
Balance at January 1,		179,000		26,975
Granted		-		179,000
Exercised		-		(26,975	)
Balance		179,000		179,000

Performance Share Units

There were no PSUs outstanding at June 30, 2026 and December 31, 2025.

14.

Other Non-Operating Income (Expense)

The Company’s Other Non-Operating Income (Expense) comprises the following for the three and six months ended June 30, 2026 and 2025:

	For the three months ended June 30,						For the six months ended June 30,
	2026			2025			2026			2025
Foreign exchange gain (loss)	$	(755	)	$	3,813		$	(507	)	$	3,904
Interest expense		(1,057	)		(2,589	)		(2,437	)		(6,448	)
Realized gain (loss) on marketable securities		-			-			-			1
Extinguishment of government loan		41			-			41			-
Other non-operating income (expense)		(413	)		123			(604	)		29
	$	(2,184	)	$	1,347		$	(3,507	)	$	(2,514	)

15.

Income (Loss) Per Share

The following table sets forth the computation of basic and diluted loss per share for the three and six months ended June 30, 2026 and 2025:

Page 20 of 27

ELECTRA BATTERY MATERIALS CORPORATION

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

	For the three months ended June 30					For the six months ended June 30
	2026		2025			2026			2025
Numerator
Net income (loss) for the period – basic	$	9,028	$	(2,005	)	$	37,170		$	(14,685	)
Deduct – Change in fair value of pre-funded warrants		1,584		-			(6,336	)		-
Net income (loss) for the period – adjusted for the effect of dilution		10,612		(2,005	)		30,834			(14,685	)
Denominator
Basic – weighted average number of shares outstanding		105,174,158		17,807,021			103,673,897			16,317,480
Income (loss) Per Share – Basic	$	0.09	$	(0.11	)	$	0.36		$	(0.90	)
Pre-funded warrants		26,405,657		-			26,405,657			-
DSU		445,110		-			445,110			-
Stock options		5,605		-			20,326			-
Diluted – weighted average number of shares outstanding		132,030,430		17,807,021			130,544,990			16,317,480
Income (loss) Per Share – Diluted	$	0.08	$	(0.11	)	$	0.24		$	(0.90	)

Conversion option, share purchase warrants (other than prefunded warrants), certain stock options, RSUs and certain DSUs were excluded from the calculation of diluted weighted average number of common shares outstanding for the three and six months ended June 30, 2026 as they were anti-dilutive.

16.

Management of Capital

The Company’s objectives when managing capital are to ensure it has sufficient cash available to support its future Refinery expansion and exploration activities; and ensure compliance with debt covenants under the convertible notes arrangement.

The Company manages its capital structure, consisting of cash and cash equivalents, share capital and debt (convertible notes and loans), and will make adjustments depending on the funds available to the Company for its future Refinery expansion and exploration activities. The Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company’s management to sustain future development of the business.

Management reviews its capital management approach on an ongoing basis and believes that this approach, given the size of the Company, is reasonable. Other than the minimum liquidity balance covenant under the term loan arrangement, the Company is not subject to externally imposed capital requirements. The term loan arrangement does not impose any quantitative ratio covenants on the Company in the course of the normal construction and operation of its current assets.

17.

Fair Value Measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. All assets and liabilities for which fair value is measured or disclosed in the condensed interim consolidated financial statements are categorized within the fair value hierarchy, described, as follows, based on the lowest-level input that is significant to the fair value measurement as a whole:

Page 21 of 27

ELECTRA BATTERY MATERIALS CORPORATION

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

Level 1 — Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2 — Quoted prices in markets that are not active or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and

Level 3 — Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs.

Assets and Liabilities Measured at Fair Value

The Company’s fair values of financial assets and liabilities were as follows:

	Classification
June 30, 2026	Fair value through profit or loss		Amortized cost		Level 1		Level 3		Total Fair Value
Assets:
Cash and cash equivalents	$	-	$	35,872	$	-	$	-	$	35,872
Restricted cash		-		1,208		-		-		1,208
Receivables		-		860		-		-		860
	$	-	$	37,940	$	-	$	-	$	37,940
Liabilities:
Accounts payable and accrued liabilities	$	-	$	7,364	$	-	$	-	$	7,364
Short-term deferred government grant		-		3,946		-		-		3,946
Long-term government loan payable		-		5,549		-		-		5,549
Term loan		-		41,302		-		-		41,302
US Warrants		33,117		-		-		33,117		33,117
Royalty		-		2,543		-		-		2,543
	$	33,117	$	60,704		-	$	33,117	$	93,821

Page 22 of 27

ELECTRA BATTERY MATERIALS CORPORATION

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

	Classification
December 31, 2025	Fair value through profit or loss		Amortized cost		Level 1		Level 3		Total Fair Value
Assets:
Cash and cash equivalents	$	-	$	39,024	$	-	$	-	$	39,024
Restricted cash		-		1,208		-		-		1,208
Receivables		-		666		-		-		666
	$	-	$	40,898	$	-	$	-	$	40,898
Liabilities:
Accounts payable and accrued liabilities	$	-	$	5,817	$	-	$	-	$	5,817
Short-term deferred government grant		-		642		-		-		642
Long-term government loan payable		-		5,196		-		-		5,196
Term loan		-		38,168		-		-		38,168
US Warrants		81,658		-		-		81,658		81,658
Royalty		-		2,338		-		-		2,338
	$	81,658	$	52,161		-	$	81,658	$	133,819

Valuation techniques

A) Royalty

The fair value of the Royalty has been estimated at inception using a discounted cash flow model. The key inputs in the valuation include the effective interest rate of 11.125% and cash flows estimates of future operating and gross revenues. As there are significant unobservable inputs used in the valuation, the Royalty is included in Level 3. A 3% increase or decrease in the effective interest rate would be a decrease of $339 (December 31, 2025 - $1,862) or an increase of $411 (December 31, 2025 - $928) to the fair value of the royalty.

B) Other Financial Derivative Liability (2026, Warrants, 2028 Warrants and New Offering Warrants)

The Company uses the Black-Scholes Option Pricing Model. The key inputs in the valuation include risk-free rates and equity volatility. As there are significant unobservable inputs used in the valuation, the financial derivative liability is included in Level 3.

The Company used an equity volatility of 49.9% for the 2026 Warrants. If the Company used an equity volatility that was higher or lower by 10%, the potential effect would be an increase of $Nil (December 31, 2025 - $25) or a decrease of $Nil (December 31, 2025 - $25) to the fair value of the embedded derivative.

The Company used an equity volatility of 51.0% for the 2028 Warrants (New Equity Offering Warrants). If the Company used an equity volatility that was higher or lower by 10%, the potential effect would be an increase of $2,045 (December 31, 2025 - $2,910) or a decrease of $2,289 (December 31, 2025 - $3,079) to the fair value of the embedded derivative.

The Company used an equity volatility of 51.0% for the Restructuring Warrants. If the Company used an equity volatility that was higher or lower by 10%, the potential effect would be an increase of $2,447 (December 31, 2025 - $3,481) or a decrease of $2,739 (December 31, 2025 - $3,584) to the fair value of the embedded derivative.

Page 23 of 27

ELECTRA BATTERY MATERIALS CORPORATION

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

18.

Commitments and Contingencies

From time to time, the Company and/or its subsidiaries may become defendants in legal actions and the Company intends to defend itself vigorously against all legal claims. Electra is not aware of any unrecorded claims against the Company that could reasonably be expected to have a materially adverse impact on the Company’s consolidated financial position, results of operations or the ability to carry on any of its business activities.

As at June 30, 2026, the Company’s commitments relate to purchase and services commitments for work programs relating to Refinery expansion and payments under financing arrangements. The Company entered into a binding agreement for sale of cobalt sulfate. This is dependent on certain conditions that the Company has to fulfill by December 2026. If not met, the buyer has the option to amend or extend the agreement.

The Company had the following commitments as at June 30, 2026.

	2026		2027		2028		2029		Thereafter		Total
Purchase commitments	$	18,381	$	-	$	-	$	-	$	-	$	18,381
Term loan		-		-		56,449		-		-		56,449
Government loan payments		9		36		1,615		2,141		6,378		10,179
Lease payments		65		43		-		-		-		108
Royalty payments ¹		-		-		238		549		3,816		4,603
	$	18,455	$	79	$	58,302	$	2,690	$	10,194	$	89,720

¹ Royalty payments are estimated amounts associated with the royalty agreements entered with the debt holders as part of the term loan. The estimated amounts and timing are subject to changes in cobalt sulfate prices, timing of completion of the refinery, reaching commercial operations and timing and amounts of sales.

On March 19, 2026, the Company announced that it received notice from The Nasdaq Stock Market LLC stating that the Company is not in compliance with the minimum bid price requirement of US$1.00 per share based upon the closing bid price of the Company's common shares for the 30 consecutive business days prior to the date of the Notice. The Corporation has 180 calendar days from the date of the Notice, or until September 14, 2026, to regain compliance with the minimum bid requirement, during which time the Company’s common shares will continue to trade on Nasdaq.

19.

Segmented Information

The Company’s Chief Operating Decision Maker (“CODM”) is its Chief Executive Officer. The CODM reviews the results of Company’s refinery business and exploration and evaluation activities as discrete business units, separate from the rest of the Company’s activities which are reviewed on an aggregate basis.

The Company’s exploration and evaluation activities are located in Idaho, USA, with its head office function in Canada. All of the Company’s capital assets, including property and equipment, and exploration and evaluation assets are located in Canada and USA, respectively.

Page 24 of 27

ELECTRA BATTERY MATERIALS CORPORATION

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

(a)

Segmented operating results for the three months ended June 30, 2026 and 2025:

For the three months ended June 30, 2026	Refinery			Exploration and Evaluation			Corporate and Other			Total
Operating expenses
Consulting and professional fees	$	117		$	64		$	1,043		$	1,224
Exploration and evaluation expenditures		-			90			-			90
General and administrative		490			1			301			792
Investor relations and marketing		-			-			457			457
Salaries and benefits		97			-			968			1,065
Share-based payments		-			-			393			393
Operating loss	$	704		$	155		$	3,162		$	4,021
Changes in US Warrants		-			-			15,233			15,233
Other non-operating loss		-			-			(2,184	)		(2,184	)
Income (loss) before taxes	$	(704	)	$	(155	)	$	9,887		$	9,028

For the three months ended June 30, 2025	Refinery			Exploration and Evaluation			Corporate and Other			Total
Operating expenses
Consulting and professional fees	$	226		$	-		$	841		$	1,067
Exploration and evaluation expenditures		-			48			-			48
General and administrative and travel		365			2			356			723
Investor relations and marketing		-			-			119			119
Salaries and benefits		466			-			832			1,298
Share-based payments		-			-			228			228
Operating loss	$	1,057		$	50		$	2,376		$	3,483
Gain on financial derivative liability - Convertible Notes		-			-			231			231
Changes in US Warrants and 2026 US Warrants		-			-			(100	)		(100	)
Other non-operating loss		-			-			1,347			1,347
Loss before taxes	$	(1,057	)	$	(50	)	$	(898	)	$	(2,005	)

(b)

Segmented operating results for the six months ended June 30, 2026 and 2025:

For the six months ended June 30, 2026	Refinery			Exploration and Evaluation			Corporate and Other			Total
Operating expenses
Consulting and professional fees	$	294			162			1,952			2,408
Exploration and evaluation expenditures		-			145			-			145
General and administrative		749			1			854			1,604
Investor relations and marketing		-			-			600			600
Salaries and benefits		392			-			1,517			1,909
Share-based payments		-			-			1,198			1,198
Operating loss	$	1,435			308			6,121			7,864
Changes in US Warrants		-			-			48,541			48,541
Other non-operating loss		-			-			(3,507	)		(3,507	)
Income (loss) before taxes	$	(1,435	)		(308	)		38,913			37,170

Page 25 of 27

ELECTRA BATTERY MATERIALS CORPORATION

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

For the six months ended June 30, 2025	Refinery			Exploration and Evaluation			Corporate and Other			Total
Operating expenses
Consulting and professional fees	$	379		$	-		$	1,689		$	2,068
Exploration and evaluation expenditures		-			89			-			89
General and administrative and travel		873			2			891			1,766
Investor relations and marketing		-			-			211			211
Salaries and benefits		965			-			1,585			2,550
Share-based payments		-			-			555			555
Operating loss	$	2,217		$	91		$	4,931		$	7,239
Unrealized gain on marketable securities		-			-			4			4
Loss on financial derivative liability - Convertible Notes		-			-			(4,836	)		(4,836	)
Changes in US Warrants		-			-			(100	)		(100	)
Other non-operating loss		-			-			(2,514	)		(2,514	)
Loss before taxes	$	(2,217	)	$	(91	)	$	(12,377	)	$	(14,685	)

(b)

Segmented assets and liabilities as at June 30, 2026 and December 31, 2025:

	Total Assets				Total Liabilities
	June 30, 2026		December 31, 2025		June 30, 2026		December 31, 2025
Refinery	$	68,684	$	56,443	$	10,013	$	12,493
Exploration and Evaluation ¹		92,153		88,884		7		53
Corporate and Other		35,419		40,237		88,936		126,768
	$	196,256	$	185,564	$	98,956	$	139,314

¹ Total non-current assets comprising of exploration and evaluation assets in the amount of $92,042 (December 31, 2025 - $88,776) are located in Idaho, USA. All other assets are located in Canada.

20.

Related Party Transactions

The Company’s related parties include key management personnel and companies related by way of directors or shareholders in common. The Company paid and/or accrued during the three and six months ended June 30, 2026 and 2025, the following fees to management personnel and directors.

	For the three months ended June 30,				For the six months ended June 30,
	2026		2025		2026		2025
Management	$	760	$	665	$	1,044	$	1,330
Directors’ fees		32		54		97		101
	$	792	$	719	$	1,141	$	1,431

Page 26 of 27

ELECTRA BATTERY MATERIALS CORPORATION

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

During the three and six months ended June 30, 2026, the Company had share-based payments made to management and directors of $710 and $1,644 (for the three and six months ended June 30, 2025 - $147 and $382, respectively).

As at June 30, 2026, the accrued liabilities balance for related parties was $1,671 (December 31, 2025 - $1,582, which relates mainly to compensation accruals.

21.

Subsequent Events

On July 20, 2026, the Company entered into an amendment to its Credit and Guaranty Agreement. The amendment increased the amount of permitted indebtedness the Company may incur in connection with government financing arrangements and amended certain provisions to permit related payments and the granting of pari passu liens to secure a portion of such indebtedness. All existing guarantees, security interests and other obligations under the Credit Agreement were reaffirmed, and all other terms of the Credit Agreement remained unchanged.

On July 31, 2026, the Company finalized definitive agreements with Invest Ontario, an agency of the Government of Ontario, for $17,500 loan for an interest rate of 6.9% per annum to support construction of its cobalt sulfate refinery in Temiskaming Shores, Ontario. Interest begins accruing on January 1, 2029 with repayment over 4 years commencing on December 31, 2029.

Page 27 of 27

Exhibit 99.2

ELECTRA BATTERY MATERIALS CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 and 2025

(EXPRESSED IN THOUSANDS OF CANADIAN DOLLARS)

ELECTRA BATTERY MATERIALS CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

Contents

General	3
Company Information	3
Recent Developments	4
Projects & Outlook	6
Summary of Quarterly Results	9
Financial & Operating Results for the Three Months Ended June 30, 2026	10
Summary of Six Months Ended June 30, 2026 and 2025 Results	11
Results of Operations for the Six Months Ended June 30, 2026	11
Selected Quarterly Financial Information	12
Capital Structure, Resources & Liquidity	12
Capital Structure	12
Liquidity	13
Commitments	14
Related Party Transactions	14
Off Balance Sheet Arrangements	15
Financial Instruments	15
Risk Management	15
Financial Risk Factors	15
Business Risks and Uncertainties	16
Research and Development, Patents and Licenses, etc.	19
Trend Information	19
Significant Accounting Estimates	19
Future Changes in Accounting Policies & Initial Adoption	19
Internal Control Over Financial Reporting	19
Cautionary Statement Regarding Forward-Looking Statements	20

Page 2 of 21

ELECTRA BATTERY MATERIALS CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

General

This Management’s Discussion and Analysis (“MD&A”) of Electra Battery Materials Corporation (“Electra” or the “Company”) was prepared as at August 11, 2026 and provides management’s analysis of the Company’s financial condition, results of operations and cash flows for the three and six months ended June 30, 2026 and 2025.

This MD&A should be read together with the Company’s unaudited condensed interim consolidated financial statements for the three and six months ended June 30, 2026 and 2025 and the related notes (the “Interim Financial Statements”), which have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting, as issued by the International Accounting Standards Board. This MD&A should also be read together with the Company’s audited consolidated financial statements and MD&A for the year ended December 31, 2025.

Additional information concerning the Company, including its Annual Information Form, annual report on Form 20-F and other continuous disclosure documents, is available under the Company’s profile on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. The Company’s common shares (the “common shares”) are listed on the TSX Venture Exchange (“TSXV”) and the Nasdaq Capital Market (“Nasdaq”) under the symbol ELBM.

Company Information

Electra Battery Materials Corporation was incorporated on July 13, 2011, under the Business Corporations Act of British Columbia (the “Act”). On September 4, 2018, the Company filed a Certificate of Continuance into Canada and adopted Articles of Continuance as a Federal Company under the Canada Business Corporations Act (the “CBCA”). On December 6, 2021, the Company changed its corporate name from First Cobalt Corp. to Electra Battery Materials Corporation to better align with its strategic vision.

The Company is in the business of battery materials refining, including refining material from mining operations and from the recycling of battery scrap and end of life batteries, and the acquisition and exploration of resource properties. The Company is focused on building a diversified portfolio of assets that are highly leveraged to the battery supply chain with assets located primarily in North America, with the intent of providing a North American supply of battery materials. The Company has two significant North American assets bases and a complementary technology and development platform:

(i)

a hydrometallurgical refinery located in Ontario, Canada (the “Refinery”);

(ii)

a number of properties within the Idaho Cobalt Belt (the “Idaho Properties”), including the Company’s flagship mineral project, Iron Creek and Ruby (the “Iron Creek Project”); and

(iii)

proprietary process technology, technical know-how and engineering capabilities relating to battery materials recycling and nickel refining.

The Company’s registered and records office is 40 Temperance Street, Suite 3200, Bay Adelaide Centre – North Tower, Toronto, Ontario, Canada M5H 0B4. The Company’s head office is located at 133 Richmond Street W, Suite 602, Toronto, Ontario, M5H 2L3.

Six-Month Overview

Having established a stronger foundation to advance the Refinery through a combination of government support and financing and restructuring initiatives completed in 2025, the Company entered 2026 with a strengthened balance sheet and improved financial flexibility. This foundation included funding support from the U.S. Department of War, equity financings, funding commitments from the Government of Canada and Invest Ontario, and a comprehensive recapitalization completed in October 2025, which significantly reduced outstanding debt and extended debt maturities. During the first half of 2026, the Company converted the Government of Canada funding commitment into a definitive investment agreement. Subsequent to quarter-end, the Company also executed definitive documentation with Invest Ontario.

Page 3 of 21

ELECTRA BATTERY MATERIALS CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

During the six months ended June 30, 2026, the Company built on this foundation by advancing the Refinery from construction reactivation into full execution and strengthening its commercial and operational readiness. Management’s principal focus was on maintaining safety, controlling cost and schedule, finalizing major construction packages and preparing the organization for commissioning and production ramp-up.

Highlights for the Six Months Ended June 30, 2026

Approved a US$73,000 (approximately $100,000) construction budget and a baseline execution schedule for the Refinery, with early commissioning of select utilities and circuits targeted to begin in the fourth quarter of 2026, mechanical completion targeted for the second quarter of 2027, production ramp-up targeted for the third quarter of 2027 and commercial production targeted for the fourth quarter of 2027.

Completed the early works program and advanced full-scale construction, including civil, structural, concrete, tankage, process-equipment and piping activities across key process areas.

Awarded approximately $46,000 of Refinery-related construction packages by June 30, 2026, including engineering and construction-management support and major packages for the crystallizer, silo and dry-product handling, solvent extraction, and structural, mechanical and piping scopes.

Executed a definitive $20,000 investment agreement with the Government of Canada under the Strategic Response Fund, converting the previously announced non-binding letter of intent into a firm funding commitment, subject to the agreement’s terms and conditions.

Updated a multi-year supply agreement with LG Energy Solution (“LGES”) for the long-term supply of battery-grade cobalt sulfate from the Refinery, including a firm commitment for approximately 60% of planned production through 2029 and an option to extend through 2032.

Advanced Electra’s longer-term growth pipeline by launching a development study for a potential battery-grade nickel refinery in the southeastern United States, aimed at addressing a strategic gap in North American critical-mineral processing while maintaining the Ontario Refinery as the Company’s immediate priority. Generated gross proceeds of approximately US$2,100 during the second quarter through the issuance of 3,009,295 common shares under the Company’s at-the-market equity program (the “ATM Program”).

Recent Developments

Refinery Construction and Project Execution

On January 8, 2026, the Company provided a Refinery construction update indicating that exterior pipe racks connecting key process buildings had been completed, with civil, structural, concrete and tank installation work underway. Site preparation, parking, power services and support areas were reported as largely complete.

On February 3, 2026, the Company announced it had awarded a contract valued at approximately US$6,100 ($8,300) to EXP Services Inc. to provide engineering, project management and construction management support during the construction phase of the Refinery.

On February 23, 2026, the Company announced Board approval of a US$73 million construction budget and a defined execution schedule for its Ontario cobalt sulfate refinery. The project is expected to begin commissioning in Q4 2026, achieve mechanical completion in Q2 2027, ramp up production in Q3 2027, and reach commercial production in Q4 2027, marking a clear path toward completing North America's first battery-grade cobalt sulfate refinery.

On March 10, 2026, the Company announced that it had entered into a binding term sheet with LG Energy Solution (“LGES”) updating the terms of its long-term agreements for the supply of battery-grade cobalt sulfate from Electra’s Refinery. The agreement advances the Company’s commercial strategy and supports the development of a secure North American battery materials supply chain. The supply agreement is expected to support LGES’s North American battery manufacturing operations once the Refinery reaches commercial production.

On March 19, 2026, the Company confirmed the completion of its early works at the Refinery and the transition toward full-scale construction. The update noted that key infrastructure is in place, major equipment has been procured, and construction sequencing has been defined, positioning the project to advance toward mechanical completion and commissioning.

Page 4 of 21

ELECTRA BATTERY MATERIALS CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

On April 9, 2026, the Company awarded approximately $7,800 in construction contracts related to key infrastructure with defined construction scopes across key process areas, bringing additional portions of the refinery into active execution at the Refinery. The awards included contracts of approximately $6,800 for structural, mechanical and piping work associated with the Refinery’s crystallizer circuit and $1,000 for construction of the Refinery’s silo building, including structural and civil works associated with dry product storage, handling, and final packaging infrastructure.

On May 13, 2026, the Company announced the award of a further $24,900 in construction contracts to WB Melback Corporation. The contract covers the solvent extraction (SX) building scope including concrete and civil works, structural steel erection, piping installation, and electrical and instrumentation. Electra has issued an LNTP to initiate early execution activities while the parties finalize a definitive construction agreement.

On June 4, 2026, the Company awarded an approximately $12,400 structural, mechanical and piping construction package to Kilmarnock Enterprises. The scope includes civil and concrete work, structural steel and process equipment installation, piping fabrication and installation, and commissioning support. With this award, the Company has awarded approximately $46,000 of refinery-related construction packages and issued a Limited Notice to Proceed while the definitive agreement is finalized.

Government Funding and Financial Flexibility

On May 4, 2026, the Company announced a definitive investment agreement with the Government of Canada under the Strategic Response Fund, securing $20,000 in funding to support completion and commissioning of its refinery. This agreement converts the previously announced non-binding Letter of Intent into a firm commitment.

On July 20, 2026, the Company amended its senior secured Credit Agreement to increase its capacity to incur permitted indebtedness relating to government financing arrangements and provide greater flexibility to grant liens and make payments in connection with such indebtedness. The amendment also permits a portion of the government financing indebtedness to be secured on a pari passu basis with the existing secured lenders. All existing guarantees, security and other obligations remain in effect, and all other terms of the Credit Agreement remain unchanged.

On July 31, 2026, the Company executed definitive documentation with Invest Ontario, securing their previously announced $17,500 funding commitment in support of the refinery construction project.

The Company’s disclosed construction funding plan includes equity financing completed in October 2025 and governmental support from the U.S. Department of Defense, the Government of Canada and Invest Ontario. The timing of cash receipts under government programs may not align with the timing of project expenditures and therefore remains an important working-capital consideration.

On December 22, 2025, the Company established an at-the-market (“ATM”) equity program with H.C. Wainwright & Co. to sell up to US$5,500 of common shares at prevailing market prices, providing a flexible capital-raising tool. On February 20, 2026, the Company increased the size of the ATM program to US$25,000. During the six months ending June 30, 2026, the Company issued 7,743,900 common shares under the ATM at a weighted average price of $1.21 per share, generating proceeds of approximately $8,991 net of transaction costs.

Commercial and Supply Chain Development

On March 10, 2026, the Company announced an updated multi-year supply agreement with LGES for battery-grade cobalt sulfate expected to be produced by the Refinery. The arrangement is expected to support LGES’s North American battery manufacturing operations following the Refinery’s achievement of commercial production and represents a significant component of the Company’s commercial strategy.

Page 5 of 21

ELECTRA BATTERY MATERIALS CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

The Company continues to advance feedstock planning and product qualification activities. Its initial operating plan contemplates cobalt hydroxide feedstock from responsibly managed international mining operations, while metallurgical testing and business development activities are intended to evaluate additional North American feedstock sources over time. Commercial readiness work also includes logistics, reagent supply, customer qualification, working-capital planning and organizational preparations required for commissioning and ramp-up.

Corporate and Capital Markets Matters

Effective February 28, 2026, Marty Rendall departed as Chief Financial Officer to pursue another executive opportunity. David Allen, who previously served as the Company’s Chief Financial Officer, was appointed Interim Chief Financial Officer while the Company conducts a search for a permanent successor.

On March 19, 2026, the Company announced that it had received notice from Nasdaq that it was not in compliance with the minimum bid-price requirement because the closing bid price of its common shares had been below US$1.00 for 30 consecutive business days. The Company was provided until September 14, 2026 to regain compliance. The common shares continue to trade on Nasdaq during the compliance period.

At the Company’s annual meeting held on June 23, 2026, shareholders approved the matters described in the management information circular, including the Employee Share Purchase Program. During the second quarter, employees purchased 26,256 common shares under that program, with a corresponding number of common shares acquired by the Company in accordance with its terms. On June 30, 2026, the Company granted 91,954 deferred share units to non-employee directors under the Deferred Share Unit Plan.

On August 12, 2026, as part of its second quarter corporate update, the Company announced the appointment of Peter Rawlins as Chief Financial Officer, effective August 26, 2026. Mr. Rawlins brings more than 20 years of mining finance and capital markets experience and succeeds David Allen, who will continue with the Company on a part-time basis through completion of the Ontario refinery to support project execution and ensure an orderly transition.

Projects & Outlook

The Company’s vision is to build a North American supply of battery materials with a focus on refining material from mining operations and from the recycling of battery scrap and end of life batteries. The Company’s primary asset is the wholly owned Refinery located in Ontario, Canada. The Company also owns the Idaho Properties within the Idaho Cobalt Belt in the United States. The Idaho Properties include the Iron Creek Project and other minerals projects. The Company also holds royalty interests over several silver and cobalt properties in Ontario known as the Cobalt Camp.

The Ontario Cobalt Sulfate Refinery

The Refinery is a permitted brownfield hydrometallurgical facility located in Temiskaming Shores, Ontario. It is being recommissioned and expanded to produce battery-grade cobalt sulfate for North American and allied markets. The site benefits from installed infrastructure, major equipment already procured or delivered, access to Ontario’s electricity grid and proximity to established transportation and industrial services.

Design Basis and Development Plan

The Refinery is expected to have an initial capacity of approximately 5,120 tonnes per annum, with a pathway to approximately 6,500 tonnes per annum through targeted expansion, debottlenecking and optimization of key circuits. The crystallizer has been sized to support the potential expanded rate.

A 2020 engineering study on the expansion of the Refinery that demonstrated that the facility could become a significant, globally competitive producer of cobalt sulfate for the electric vehicle market, determining the Refinery could produce 25,000 tonnes of battery-grade cobalt sulfate annually (equating to approximately 5,000 tonnes of cobalt contained in sulfate), which would represent approximately 5% of the total refined global cobalt market and 100% of the North American cobalt sulfate supply. The study indicated strong operating margins at the asset level.

Page 6 of 21

ELECTRA BATTERY MATERIALS CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

Budget, Schedule and Execution Model

The Board-approved construction budget of US$73,000 (approximately $100,000) is intended to fund remaining construction activities through mechanical completion. The current target schedule provides for early commissioning of select utilities and circuits beginning in the fourth quarter of 2026, mechanical completion in the second quarter of 2027, production ramp-up beginning in the third quarter of 2027 and commercial production in the fourth quarter of 2027.

The Company is executing the project through multiple construction packages aligned with major process areas, supported by an owner’s project team and external engineering, project-management and construction-management resources. This approach provides Management with direct oversight of construction sequencing, contractor performance, project integration and cost control. It also requires effective interface management, project controls and coordination among multiple contractors.

During the second quarter of 2026, the Company substantially completed site mobilization and advanced the remaining major construction packages, including finalizing key scopes of work and executing definitive agreements with contractors. With these activities largely complete, the project remains on schedule, with early commissioning of select utilities and process circuits targeted for Q4 2026, mechanical completion in Q2 2027, production ramp-up in Q3 2027, and commercial production in Q4 2027.

Funding and Capital Requirements

The Company has secured approximately US$82,000 of aggregate financial support for Refinery construction, comprising governmental grants and loans and the October 2025 equity financing. Management’s assessment of funding sufficiency is subject to the satisfaction of funding conditions, the timing of reimbursements, foreign exchange rates, actual construction costs, contingency usage and the Company’s continuing corporate and working-capital requirements.

Capital requirements beyond mechanical completion are expected to include commissioning, operational readiness, initial inventories and receivables, feedstock and reagent purchases, corporate costs and costs associated with production ramp-up. The Company previously estimated commissioning and ramp-up expenditures at approximately US$15,000 (approximately $20,500). Funding plans for these requirements may include available liquidity, government support, working-capital facilities, customer or supplier arrangements and capital-market alternatives.

Commercial Readiness and Operating Preparation

Commercial readiness is being advanced in parallel with construction. The execution of the LGES supply agreement supports future product placement, while additional commercial discussions are intended to diversify the Company’s customer and supply relationships.

Potential North American Nickel Refinery

On June 8, 2026, the Company announced that it had engaged engineering consultants to advance a development study for a potential battery-grade nickel refinery in the United States. The study reflects the growing need for domestic refining capacity as North America continues to invest in battery manufacturing, defence and advanced manufacturing while remaining heavily dependent on offshore processing of battery-grade nickel. Building on engineering work completed by Electra in 2022 with Hatch, Glencore and Talon Metals, the study is evaluating technical requirements, capital intensity, operating parameters, site-selection criteria and potential development pathways for a facility producing approximately 15,000 tonnes per year of nickel sulfate and nickel metal and 1,000 tonnes per year of cobalt metal. The study is intended to inform future development decisions and does not represent a construction decision or capital commitment. The Ontario refinery remains the Company's primary development priority.

Refining & Recycling of Black Mass

Black mass is the material left after expired lithium-ion batteries are shredded and their casings removed. It contains high-value elements including nickel, cobalt, manganese, copper, lithium, and graphite, which can be recycled to make new batteries. With increasing demand for these metals and a projected supply shortage of sustainable critical minerals such as nickel and cobalt, black mass recycling is increasingly important to the EV battery supply chain. The IEA expects production scrap to remain the primary source of battery-recycling feedstock until at least the mid-2030s.

Page 7 of 21

ELECTRA BATTERY MATERIALS CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

In February 2023, Electra completed the first plant-scale recycling of black mass material in North America, successfully recovering key metals including nickel, cobalt, and graphite using its proprietary process. By March 2023, the plant was also recovering lithium and successfully produced mixed hydroxide precipitate (MHP) at contained metal grades for nickel and cobalt above quoted market specifications. The trial also recovered copper and manganese. In the fall of 2024, the Company achieved a key milestone, producing lithium carbonate with greater than 99% purity, or technical grade, confirming it can produce high-quality, battery-grade materials from recycled black mass. To date, the Company has shipped approximately 28 tonnes of MHP to customers.

This has attracted interest from companies in the battery supply chain looking for North American refining solutions, and in 2024, the Company received a $5,000 funding commitment from Canada’s Critical Mineral Research Development & Demonstration Program to demonstrate that its hydrometallurgical process can recycle black mass on a continuous production basis, to prove it is scalable, profitable, and reproducible at other locations.

In mid-2025, the Company completed a feasibility level Class 3 Engineering study for the construction of a modular battery recycling facility adjacent to its Refinery, building on the technology and expertise accumulated during a year-long black mass recycling trial, whereby Electra produced technical grade lithium and a nickel and cobalt product from end-of-life lithium batteries.

The Refinery facility will be designed to recover lithium, nickel, cobalt, manganese, copper and graphite from lithium-ion battery manufacturing scrap and end of life batteries using the Company’s hydrometallurgical process. The next phase of work, funded in part by Natural Resources Canada, will involve operating and recycling process under continuous and semi-continuous conditions to simulate commercial scale throughput.

Exploration & Evaluation Assets

The Company is focused on building a North American battery materials supply chain. The Company’s Idaho Properties include the Iron Creek Project, its flagship exploration property, with a March 2023 resource estimate (the “2023 MRE”). The properties cover approximately 3,260 hectares with both patented and unpatented claims, as well as 600 meters of underground drifting. In addition to the Iron Creek resource, there are numerous cobalt-copper targets on the property.

The 2023 MRE includes a mineral resource estimate based on all drilling conducted through the end of 2022. The resource model calculated an indicated mineral resource of 4.45 million tonnes at 0.19% Co and 0.73% Cu and an inferred mineral resource of 1.23 million tonnes at 0.08% Co and 1.34% Cu. The mineralization remains open along strike and downdip. The resource does not include the Ruby target as sufficient drilling has not been performed to effectively calculate a volume and grade of mineralization. Management believes that there is potential to continue to expand the size of the Iron Creek resource and continue drilling at the Ruby target.

In July 2024, the Company announced a previously unknown copper surface showing, the Malachite Hill Copper Showing (the “MHS”), on an unexplored boundary area of the portion of the Idaho properties claims subject to the earn-in and joint venture agreement among the Company, through Idaho Cobalt Company, Borah Resources and Phoenix Copper (the “Redcastle Agreement”). The Malachite Copper Showing was discovered in 2023 and assay results of outcrop grab samples indicate elevated copper (maximum = 2,660 parts per million copper), and low cobalt values. This finding demonstrates the presence of favourable host rocks at surface in this area of the Redcastle property; however, the extent of the surface mineralization exposure remains to be determined. Interestingly, the MHS appears to be located approximately two (2) kilometers along strike (southeast) of Electra’s Ruby cobalt-copper target.

In the latter half of 2024, the Company received a Decision Notice for the Iron Creek exploration drilling from U.S. Forestry Service. The 10-year exploration permit allows the Company to undertake exploration activities including setting up 91 drilling locations, along with constructing temporary access roads and staging areas, over 11.3 acres of the Idaho properties.

Page 8 of 21

ELECTRA BATTERY MATERIALS CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

In October 2025, Electra launched a new program to advance mineral deposit modeling and feedstock integration at its Iron Creek Project. In partnership with the Centre to Advance the Science of Exploration to Reclamation in Mining (CASERM) at the Colorado School of Mines, Electra is conducting geological research at Iron Creek using short-wave infrared hyperspectral imaging to refine its geological model and guide a potential 2026 drilling program. Bulk sampling from Adit #1 will support metallurgical testing to validate processing parameters and evaluate future feedstock compatibility with the refinery.

During Q2 2026, Electra initiated a technical review of the Iron Creek Property. The work is intended to integrate historical exploration results from 2018-2023 programs and refine the geological interpretations to identify drill targets that expand the resource and recognize high-potential copper-cobalt-gold areas elsewhere on the property. In addition, a drill core scanning program was completed from holes drilled at Iron Creek and Ruby by Colorado School of Mines. The program aims to build off a previous study that identified alteration minerals associated with mineralization in order to prioritize new areas for resource expansion. Water quality and hydrology baseline studies also continue on the Iron Creek property. All data are to be integrated in Q3-Q4, 2026. This approach advances the outlook of the Idaho assets while the Company prioritizes capital for completion of the Ontario refinery, positioning Electra or a potential partner to undertake a more focused future exploration program.

Electra holds a significant land position in the Idaho Cobalt Belt, including the Iron Creek deposit and the highly prospective Ruby target area.

Asset Value Continuity

		January 1, 2025				Foreign Exchange				December 31, 2025				Foreign Exchange				June 30, 2026
Idaho, USA		$	93,200			$	(4,424	)		$	88,776			$	3,266			$	92,042

Market Environment and Outlook

Government and customer interest in domestic critical-minerals processing continues to be shaped by supply-chain concentration, trade policy, national-security considerations and efforts to establish regional battery and advanced-manufacturing capacity. These factors may support demand for North American refining capacity and access to public-sector funding. Market conditions remain dynamic, however, as the pace and composition of electric-vehicle adoption, evolving battery chemistries and growing demand from defence, energy-storage and advanced-manufacturing applications influence customer requirements. Commodity prices and offshore competition may affect project economics, while inflation, interest rates and foreign-exchange movements may affect development costs and financing conditions.

During the remainder of 2026, management expects the Company’s performance to be driven principally by Refinery construction execution, project funding and preparations for early commissioning. The key measures of progress are expected to include safe work performance, physical completion, cost and schedule performance against baseline, completion of remaining contract awards, satisfaction of government-funding conditions, commissioning readiness and advancement of commercial and working-capital arrangements.

The project remains subject to construction, commissioning, financing, market and operating risks. Cost or schedule pressure, contractor underperformance, delays in governmental reimbursements, adverse foreign exchange movements, changes in commodity or end-market conditions, or delays in feedstock, product qualification or working-capital arrangements could affect the timing, cost or scope of the Company’s plans.

Page 9 of 21

ELECTRA BATTERY MATERIALS CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

Summary of Quarterly Results

	June 30, 2026			December 31, 2025
	($)			($)

Financial Position
Current Assets		39,121			40,502
Exploration and Evaluation Assets		92,042			88,776
Property, plant and equipment		63,885			55,078
Total Assets		196,256			185,564
Current Liabilities		44,477			88,172
Long-term Liabilities		54,479			51,142


		Three months ended June 30, 2026			Three months ended June 30, 2025
Operations
General and administrative		792			723
Consulting and professional fees		1,224			1,067
Exploration and evaluation expenditures		90			48
Investor relations and marketing		457			119
Salary and benefits		1,065			1,298
Share-based payments		393			228
Total Operating Expenses		4,021			3,483

Change in fair value of marketable securities		—			—
Gain (loss) on financial derivative liability – Convertible Notes		—			231
Changes in fair value of US Warrant		15,233			(100	)
Other non-operating income (expense)		(2,184	)		1,347

Net income (loss)		9,028			(2,005	)
Basic income (loss) per share		0.09			(0.11	)
Diluted income (loss) per share		0.08			(0.11	)

Financial & Operating Results for the Three Months Ended June 30, 2026

During the three months ended June 30, 2026, the Company recorded a net income of $9,028 (compared to a net loss of $2,005 for the three months ended June 30, 2025), and a basic earnings per share of $0.09 and diluted earnings per share of $0.08 (compared to a basic and diluted loss per share of $0.11 for the three months ended June 30, 2025).

Net income for the quarter was primarily driven by non-cash fair value adjustments, while underlying results reflect continued investment in refinery construction, improving balance sheet strength, and disciplined cost management.

Current liabilities decreased significantly to $44,477 from $88,172 at December 31, 2025, primarily due to the revaluation of the US warrants. Long-term liabilities increased slightly to $54,479 from $51,142, mainly due to payment-in-kind (“PIK”) interest on the Term Loan being added to the outstanding principal balance.

General and administrative expenses increased to $792 from $723, primarily due to higher insurance costs following the resumption of construction at the Refinery.

Consulting and professional fees were $1,224 for the three months ended June 30, 2026 compared to $1,067 for the three months ended June 30, 2025, largely reflecting higher legal activity.

Salary and benefits were $1,065 for the three months ended June 30, 2026, compared to $1,298 for the three months ended June 30, 2025. The decrease is primarily due to the capitalization of certain Refinery-related costs that were expensed in the prior period as the construction resumed at the Refinery and lower corporate headcount and lower incentive compensation relative to the prior period.

Page 10 of 21

ELECTRA BATTERY MATERIALS CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

Share-based payments for the three months ended June 30, 2026, of $393 compared to $228 for the three months ended June 30, 2025, driven by the quantity and timing of options granted and corresponding expensing thereof.

Exploration and evaluation expenditures were $90 for the three months ended June 30, 2026, compared to $48 for the three months ended June 30, 2025, with the variance attributable to the timing of annual claims fees and permitting.

Changes in the fair value of US warrants resulted in a gain of $15,233, compared with a loss of $100 during the same period in 2025. The US warrants relate to the April 2025 private placement, the October 2025 private placement and the Restructuring. Of these warrants, only the April 2025 private placement warrants were outstanding during the same period in 2025.

Other non-operating expense of $2,184 for the three months ended June 30, 2026 increased from an income of $1,347 for the three months ended June 30, 2025 due to changes in foreign exchange.

Summary of Six Months Ended June 30, 2026 and 2025 Results

	Six months ended June 30, 2026			Six months ended June 30, 2025
	($)			($)


Operations
General and administrative		1,604			1,766
Consulting and professional fees		2,408			2,068
Exploration and evaluation expenditures		145			89
Investor relations and marketing		600			211
Salary and benefits		1,909			2,550
Share-based payments		1,198			555
Total Operating Expenses		7,864			7,239

Change in fair value of marketable securities		—			4
Loss on financial derivative liability – Convertible Notes		—			(4,836	)
Changes in fair value of US Warrant		48,541			(100	)
Other non-operating expense		(3,507	)		(2,514	)

Net income (loss)		37,170			(14,685	)
Basic income (loss) per share		0.36			(0.90	)
Diluted income (loss) per share		0.24			(0.90	)

Results of Operations for the Six Months Ended June 30, 2026

During the six months ended June 30, 2026, the Company recorded a net income of $37,170 (net loss of $14,685 for the six months ended June 30, 2025), and a basic earnings per share of $0.36 and diluted earnings per share of $0.24 (compared to a basic and diluted loss per share of $0.90 for the six months ended June 30, 2025).

Net income for the six months was primarily driven by non-cash fair value adjustments, while underlying results reflect continued investment in refinery construction, improving balance sheet strength, and disciplined cost management.

General and administrative expenses were $1,604 for the six months ended June 30, 2026, compared to $1,766 for the six months ended June 30, 2025. The decrease is primarily due to the capitalization of certain Refinery-related costs that were expensed in the prior period as the construction resumed at the Refinery.

Consulting and professional fees were $2,408 for the six months ended June 30, 2026, compared to $2,068 for the six months ended June 30, 2025 primarily due to higher legal activity.

Salary and benefits were $1,909 for the six months ended June 30, 2026, compared to $2,550 for the six months ended June 30, 2025. The decrease is primarily due to the capitalization of certain Refinery-related costs that were expensed in the prior period as the construction resumed at the Refinery and lower corporate headcount and lower incentive compensation relative to the prior period.

Page 11 of 21

ELECTRA BATTERY MATERIALS CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

Share-based payments for the six months ended June 30, 2026 were $1,198 compared to $555 for the six months ended June 30, 2025. The increase was due to quantity and timing of options granted and corresponding expensing thereof.

Exploration and evaluation expenditures were $145 for the six months ended June 30, 2026, compared to $89 for the six months ended June 30, 2025.

Changes in the fair value of US warrants resulted in a gain of $48,541, compared with a loss of $100 during the same period in 2025. The US warrants relate to the April 2025 private placement, the October 2025 private placement and the Restructuring. Of these warrants, only the April 2025 private placement warrants were outstanding during the same period in 2025.

Selected Quarterly Financial Information

For the three months ended,	Net income (loss)			Basic Income (loss) per share			Diluted Income (loss) per share			Total assets
June 30, 2026	$	9,028		$	0.09		$	0.08		$	196,256
March 31, 2026		28,142			0.28			0.16			192,818
December 31, 2025		(114,045	)		(1.47	)		(1.47	)		185,564
September 30, 2025		(4,735	)		(0.27	)		(0.27	)		148,082
June 30, 2025		(2,005	)		(0.11	)		(0.11	)		145,600
March 31, 2025		(12,680	)		(0.86	)		(0.86	)		151,432
December 31, 2024		(8,666	)		(0.61	)		(0.61	)		151,447
September 30, 2024		(2,941	)		(0.21	)		(0.21	)		144,715

Capital Structure, Resources & Liquidity

As of the date of this MD&A, the Company has 106,800,138 common shares and 26,405,657 Pre-funded Warrants issued and outstanding. In addition, there are outstanding share purchase warrants and stock options for a further 104,219,599 and 3,417,435 common shares, respectively. The Company currently has 658,511 Deferred Share Units (“DSUs”), 179,000 Restricted Share Units (“RSUs”) and no Performance Share Units (“PSUs”) outstanding under its Long-Term Incentive Plan.

The following warrants were outstanding at the date of this MD&A:

Grant date	Expiry date	Number of warrants outstanding		Weighted average exercise price
April 3 and 14, 2025	October 3 and 14, 2026		761,003		US$1.38
October 22, 2025	October 22, 2028		46,000,000		US$1.25
October 22, 2025	October 22, 2028		55,041,712		US$1.25
October 22, 2025	October 22, 2028		2,416,884		US$0.75
October 22, 2025	October 22, 2028		26,405,657		Pre-funded
			130,625,256

Capital Structure

The Company manages its capital structure to maximize its financial flexibility, adjusting it in response to changes in economic conditions and the risk characteristics of the underlying assets and business opportunities. The Company does not presently utilize any quantitative measures to monitor its capital but rather relies on the expertise of the Company’s management to sustain the future development of the business. Management reviews its capital management approach on an ongoing basis and believes that this is appropriate, given the size of the Company.

As at June 30, 2026, the Company’s debt consists of a term loan with a carrying value of $42,640 (US$30,007), inclusive of payment-in-kind interest. The term loan matures in October 2028 and bears interest at 8.99% if paid in cash or 11.125% if paid in kind, at the Company’s election. In addition, the Company’s capital structure also includes government loans with repayment commencing in June 2028 following an extension of the project completion timeline to June 30, 2027.

Page 12 of 21

ELECTRA BATTERY MATERIALS CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

The current capital structure reflects the comprehensive financial restructuring completed in October 2025, pursuant to which the Company eliminated its outstanding convertible notes, reduced overall debt levels, and extended maturities.

The Company will continue to observe markets with respect to various funding alternatives including equity and debt financing to ensure its liquidity and capital resources are sufficient to fund Refinery expenditures. The Company may also require working capital funding as a result of timing of cash inflows and outflows in conjunction with the ramp up of operations.

Nasdaq Compliance

On March 16, 2026, the Company received a Deficiency Notice indicating that it is not in compliance with the Minimum Bid Price Requirement. In accordance with Nasdaq rules, the Company has been granted an initial 180-day compliance period or until September 14, 2026, to regain compliance, which requires the closing bid price of its common shares to meet or exceed US$1.00 for a minimum of 10 consecutive business days. If necessary, the Company may be eligible for an additional 180-day compliance period and retains the option to implement a reverse stock split until its next annual meeting of shareholders, under the shareholder approval obtained at the Company’s June 23, 2026 annual general and special meeting, subject to applicable approvals.

Liquidity

The Company’s objective in managing liquidity risk is to maintain sufficient liquidity to meet operational and asset advancement requirements as well as ensuring compliance with debt covenants.

At June 30, 2026, the Company had unrestricted cash of $35,872 (December 31, 2025 - $39,024) compared to accounts payable and accrued liabilities of $7,364 (December 31, 2025 - $5,817).

As of the date of this MD&A, the Company believes that, subject to completion of the remaining Ontario government financing initiative, it has sufficient financial resources necessary to complete the construction of the Refinery, however additional capital may be required to complete commissioning and other activities.

The Company had the following summarized cash flows:

	Six months ended June 30, 2026			Six months ended June 30, 2025
Cash used in operating activities	$	(7,790	)	$	(4,716	)
Cash used in investing activities		(7,633	)		(689	)
Cash provided by financing activities		12,284			4,596
Change in cash during the period		(3,139	)		(809	)
Effect of exchange rates		(13	)		19
Cash, beginning of period		39,024			3,717
Cash, end of the period	$	35,872		$	2,927

Cash used in operating activities was $7,790 during the six months ended June 30, 2026, compared to $4,716 used in operating activities during the six months ended June 30, 2025. The increase in cash used in operating activities was driven primarily by changes in working capital.

Cash used in investing activities was $7,633 during the six months ended June 30, 2026, compared to $689 used during the six months ended June 30, 2025. The increase in cash used in investing activities relates to an increase in capital spending related to the Refinery.

Page 13 of 21

ELECTRA BATTERY MATERIALS CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

Cash flows provided by financing activities were $12,284 during the six months ended June 30, 2026, compared to cash flows provided by financing activities of $4,596 during the six months ended June 30, 2025. The change was primarily driven by proceeds from the ATM, net of transaction costs and proceeds from deferred government grant.

Commitments

From time to time, the Company and/or its subsidiaries may become defendants in legal actions, and the Company may take appropriate measures to minimize the impact. Electra is not aware of any claims against the Company that could reasonably be expected to have a materially adverse impact on the Company’s consolidated financial position, results of operations or the ability to carry on any of its business activities. The Company entered into a binding agreement for sale of cobalt sulfate. This is dependent on certain conditions that the Company has to fulfill by December 2026. If not met, the Company has the option to amend or extend the agreement.

The Company’s commitments relate to purchase and services commitments for work programs relating to refinery expansion and payments under financing arrangements.

The Company had the following commitments as of June 30, 2026:

	2026		2027		2028		2029			Thereafter	Total
Purchase commitments	$	18,381	$	—	$	—	$	—	$	—	$	18,381
Term loan		—		—		56,449		—		—		56,449
Government loan payments		9		36		1,615		2,141		6,378		10,179
Lease payments		65		43		—		—		—		108
Royalty payments ¹		—		—		238		549		3,816		4,603
	$	18,455	$	79	$	58,302	$	2,690	$	10,194	$	89,720

¹ Royalty payments are estimated amounts associated with the royalty agreements entered with the debt holders as part of the October 2025 Term Loan. The estimated amounts and timing are subject to changes in cobalt sulfate prices, timing of completion of the refinery, reaching commercial operations and timing and amounts of sales.

The Company has recorded a provision for environmental remediation, reclamation and decommissioning for its Ontario assets. For the Refinery, a liability of $1,957 has been recorded as at June 30, 2026, linked to the closure plan filed and accepted in March 2022 and updated in November 2022. In relation to the refinery closure plan, an amount of $3,450 has been posted via a surety bond with the Ministry of Northern Development, Mines, Natural Resources and Forestry (“NDMNRF”) as financial assurance.

Related Party Transactions

The Company’s related parties include key management personnel and the Company’s Board of Directors.

The Company paid and/or accrued during the three and six months ended June 30, 2026 and 2025, the following fees to management personnel and directors.

	For the three months ended June 30,				For the six months ended June 30,
	2026		2025		2026		2025
Management	$	760		665	$	1,044	$	1,330
Directors’ fees		32		54		97		101
	$	792		719	$	1,141	$	1,431

As at June 30, 2026, the accrued liabilities balance for related parties was $1,671 (December 31, 2025 - $1,582), which relates mainly to compensation accruals.

Page 14 of 21

ELECTRA BATTERY MATERIALS CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

The year over year change in fees paid to management personnel and directors for the three and six months ended June 30, 2026 was primarily attributable to changes in the composition of management and the Board between 2025 and 2026.

Off Balance Sheet Arrangements

The Company currently has no off-balance sheet arrangements.

Financial Instruments

Refer to Note 21 of the Company’s consolidated financial statements for the years ended December 31, 2025 and 2024.

Risk Management

Financial Risk Factors

The Company’s risk exposure and the impact on the Company’s financial instruments are summarized below:

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. As of the date of this MD&A, the Company believes that given the completion of the remaining Ontario government financing initiative, it has sufficient financial resources necessary to meet its existing business needs for at least the next 12 months. However, additional capital will be required to maintain the current pace of Refinery construction while also funding ongoing general and administrative expenses, commissioning, working capital and other corporate requirements. The Company attempts to ensure there is sufficient access to funds to meet ongoing business requirements, considering its current cash position and potential funding sources. Although the Company has historically been successful in obtaining financing in the past, there can be no assurances that the Company will be able to obtain adequate financing in the future. The Company has future obligations to pay interest and principal related to the term debt. Repayment of the interest-free loan from Canada’s Critical Mineral Research Development & Demonstration Program begins in 2028. In conjunction with the October 2025 Term Loan, the Company was subject to a reportable minimum cash balance requirement of US$15,000 which has been reduced to US$2,000 since the signing of the definitive agreement with Invest Ontario on July 20, 2026.

Credit Risk

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Company’s primary exposure to credit risk is on its cash and cash equivalents and restricted cash which are being held with major Canadian banks that are high-credit quality financial institutions as determined by rating agencies.

Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flow of a financial instrument will fluctuate because of changes in market interest rate. The Company currently does not have any financial instruments that are linked to LIBOR, SOFR, or any form of a floating market interest rate. Therefore, changes in the market interest rate does not have an impact on the Company as at June 30, 2026.

Foreign Currency Risk

Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because they are denominated in currencies that differ from the Company’s functional currency, Canadian Dollars. The Company is exposed to foreign currency risk on fluctuations related to cash, receivables, and accrued liabilities that are denominated in US Dollars. In addition, the Company’s term debt is denominated in US dollars and fluctuations in foreign exchange rates will impact the Canadian dollar amounts required to settle interest and principal payments. The Company has not used derivative instruments to reduce its exposure to foreign currency risk nor has it entered into foreign exchange contracts to hedge against gains or losses from foreign exchange.

Page 15 of 21

ELECTRA BATTERY MATERIALS CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

Business Risks and Uncertainties

There are many risk factors facing companies involved in the mineral exploration industry. Risk management is an ongoing exercise upon which the Company spends a substantial amount of time. While it is not possible to eliminate all the risks inherent to the industry, the Company strives to manage these risks, to the greatest extent possible. The following risks are most applicable to the Company.

Going Concern

As discussed above, as of the date of this MD&A and, as a result of the Restructuring and October 2025 Financing and completion of the Company’s government funding initiatives, the Company believes that its available financial resources are sufficient to fund the currently approved construction scope of the Refinery. However, the Company will require additional capital to fund ongoing general and administrative expenses, commissioning, working capital and other corporate requirements. In the absence of additional capital, these expenditures would reduce the financial resources otherwise available for Refinery construction. The Company will continue to actively monitor funding markets, including debt and equity, in the event it needs to increase its liquidity and capital resources. The Company is also in discussion with various parties on alternatives to finance the funding of feedstock purchases. Although the Company has historically been successful in obtaining financing in the past, there can be no assurances that the Company will be able to obtain adequate financing in the future. This represents a material uncertainty that may cast doubt on the Company’s ability to continue as a going concern. The financial information presented does not include the adjustments to the amounts and classifications of assets and liabilities that would be necessary should the Company be unable to continue as a going concern. These adjustments may be material.

Financing

The Company has raised funds through grants, equity financing and debt arrangements to fund its operations and the advancement of the Refinery. The market price of natural resources, specifically cobalt prices, is highly speculative and volatile. Instability in prices may affect the interest in resource assets and the development of and production from such properties. This may adversely affect the Company’s ability to raise capital or obtain debt to fund corporate activities and growth initiatives.

Please refer to the factors set out under “Risk Factors” in our annual report on Form 20-F for the year ended December 31, 2025 dated March 27, 2026 (“Annual Report”) for further information about risk factors related to our ability to obtain sufficient funding and/or raise debt or equity capital in the future, including in the event that we are not able to continue to maintain the listing of our common shares on Nasdaq.

Technical Capabilities of the Refinery

The Company’s strategic priority is the advancement of the Refinery, with significant engineering studies and metallurgical testing conducted to date. There is no assurance that the final refining process will have the capabilities to produce specific end products. The Company manages this risk by employing and contracting technical experts in metallurgy and engineering to support refinery process decisions.

Ability to Meet Debt Service Obligations

The Company has debt obligations which include ongoing interest payments and payment of principal at maturity. In the event that the refinery construction is not completed as planned or sufficient cash flow from refinery operations is not generated, there is a risk that the Company may not have sufficient available capital to meet its debt obligations. Additionally, the Company is subject to certain covenants related to the October 2025 Term Loan, which include minimum liquidity of US$15,000 which has been reduced to US$2,000 on July 20, 2026. Should the Company breach a covenant or be unable to service the debt, the assets pledged may be transferred to the lenders.

Page 16 of 21

ELECTRA BATTERY MATERIALS CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

Macroeconomic Risks

Political and economic instability (including ongoing conflicts in Ukraine, the Gaza Strip and Iran), global or regional adverse conditions, such as pandemics or other disease outbreaks (including the COVID-19 global outbreak) or natural disasters, currency exchange rates, trade tariff developments, transport availability and cost, including import-related taxes, transport security, inflation and other factors are beyond the Company’s control. The macroeconomic environment remains challenging, and the Company’s results of operations could be materially affected by such macroeconomic conditions.

Industry and Mineral Exploration Risk

Mineral exploration is highly speculative, involves many risks and frequently is non-productive. There is no assurance that the Company’s exploration efforts will be successful. At present, the Company’s projects do not contain any proven or probable reserves. Success in establishing reserves is a result of several factors, including the quality of the project itself. Substantial expenditures are required to establish reserves or resources through drilling, to develop metallurgical processes, and to develop the mining and processing facilities and infrastructure at any site chosen for mining. Because of these uncertainties, no assurance can be given that planned exploration programs will result in the establishment of mineral resources or reserves. The Company may be subject to risks, which could not reasonably be predicted in advance. Events such as labour disputes, natural disasters or estimation errors are prime examples of industry-related risks. The Company attempts to balance this risk through ongoing risk assessments conducted by its technical team.

Commodity Prices

The Company’s mineral exploration operations and its prospects are largely dependent on movements in the price of various minerals. Prices fluctuate daily and are affected by several factors well beyond the control of the Company. The mineral exploration industry in general is a competitive market and there is no assurance that, even if commercial quantities of proven and probable reserves are discovered, a profitable market may exist. The Company has not entered any price hedging programs.

Environmental

Exploration projects or operations are subject to the environmental laws and applicable regulations of the jurisdiction in which the Company operates. Environmental standards continue to evolve, and the trend is to a longer, more complete and rigid process. The Company reviews environmental matters on an ongoing basis. If and when appropriate, the Company will make appropriate provisions in its financial statements for any potential environmental liability.

Title of Assets

Although the Company conducts title reviews in accordance with industry practice prior to any purchase of resource assets, such reviews do not guarantee that an unforeseen defect in the chain on title will not arise and defeat our title to the purchased assets. If such a defect were to occur, our entitlement to the production from such purchased assets could be jeopardized.

Competition

The Company aims to compete in the burgeoning North American critical minerals industry with the completion of the Refinery. The industry is developing in Canada with new entrants expected in the short term. Many of these competitors have substantially longer histories in the industry as well as substantially greater financial, sales and marketing resources than the Company.

The Company engages in the highly competitive resource exploration industry. The Company competes directly and indirectly with major and independent resource companies in its exploration for and development of desirable resource properties. Many companies and individuals are engaged in this business, and the industry is not dominated by any single competitor or a small number of competitors. Many of such competitors have substantially greater financial, technical, sales, marketing, and other resources, as well as greater historical market acceptance than the Company. The Company will compete with numerous industry participants for the acquisition of land and rights to prospects, and for the equipment and labour required to operate and develop such prospects.

Page 17 of 21

ELECTRA BATTERY MATERIALS CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

Competition could materially and adversely affect the Company’s business, operating results and financial condition. Such competitive disadvantages could adversely affect the Company’s ability to participate in projects with favourable rates of return.

Cybersecurity

The Company’s operations depend, in part, on how well it and its third-party service providers protect networks, equipment, information technology (“IT”) systems and software against damage from a number of threats, including, but not limited to, cable cuts, natural disasters, intentional damage and destruction, fire, power loss, hacking, computer viruses, vandalism and theft. The Company’s operations also depend on the timely maintenance, upgrade and replacement of networks, equipment, IT systems and software, as well as pre-emptive expenses to mitigate the risks of failures. Any of these and other events could result in information system failures, delays and/or increase in capital expenses. The failure of information systems or a component of information systems could, depending on the nature of any such failure, adversely impact the Company’s reputation and results of operations.

The Company’s information technology systems and online activities, including its e-commerce websites, also may be subject to denial of service, malware or other forms of cyberattacks. While the Company has taken measures to protect against those types of attacks, those measures may not adequately protect its on-line activities from such attacks. The Company’s risk and exposure to these matters cannot be fully mitigated because of, among other things, the evolving nature of these threats. As a result, cyber security and the continued development and enhancement of controls, processes and practices designed to protect systems, computers, software, data and networks from attack, damage or unauthorized access is a priority. As cyber threats continue to evolve, the Company may be required to expend additional resources to continue to modify or enhance protective measures or to investigate and remediate any security vulnerabilities.

U.S. Legislative and Regulatory Policies.

The current U.S. administration previously significantly increased tariffs on U.S. imports. In 2026, the current U.S. presidential administration has continued to threaten the enactment of additional tariffs on Canada that are as high as 100%. These tariffs have been in many cases amended, postponed, or changed in other ways since their initial announcements, including a subsequent exemption for goods compliant with the United States-Mexico-Canada Agreement, which the U.S. presidential administration is reportedly considering pulling out of. Although the United States Supreme Court recently struck down many of the administration’s tariffs as unconstitutional, the administration has responded by initiating investigations under the Trade Act of 1974 against certain countries, including Canada, whose goal is to reimpose the tariffs through alternate means. This has resulted in uncertainty over the quantum and duration of tariffs, and this lack of clarity has made it difficult to manage and mitigate the impacts of tariffs. In response to these tariffs, other countries have limited their trade with the United States and have retaliated through their own restrictions and/or increased tariffs, among other actions. In particular, there is uncertainty regarding U.S. tariffs and support for existing treaty and trade relationships, including with Canada, which has been targeted by the current U.S. presidential administration and there is substantial uncertainty as to further actions that may be taken under the current U.S. presidential administration with respect to U.S. trade policy. Implementation by the U.S. government of new legislative or regulatory policies could impose additional costs on us, or otherwise negatively impact us, which may have a material adverse effect on our business, financial condition and operations. In addition, this uncertainty may adversely impact: (i) the ability of companies to transact business with companies such as us; (ii) global stock markets (including the TSXV and Nasdaq); and (iii) general global economic conditions. We continue to evaluate the evolving status of tariffs, retaliatory tariffs, and tariff countermeasures. All these factors are outside of our control, but may nonetheless lead us to adjust our strategy to compete effectively in global markets.

Additional information on risks and uncertainties relating to the Company’s business is provided in the Company’s Annual Report under the heading “Risk Factors”. Additional information relating to Electra, including the Annual Report, is available on SEDAR+ at www.sedarplus.com. The Company’s reports and Annual Reports are also available on the SEC’s website at www.sec.gov.

Page 18 of 21

ELECTRA BATTERY MATERIALS CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

Research and Development, Patents and Licenses, etc.

The Company does not have any research and development policies.

Trend Information

Other than as disclosed elsewhere in this MD&A and our annual report on Form 20-F for the fiscal year ended December 31, 2025, we are not aware of any trends, uncertainties, demands, commitments or events since December 31, 2025, that are reasonably likely to have a material adverse effect on our revenue, income, profitability, liquidity or capital resources, or that would cause the disclosed financial information to be not necessarily indicative of future operating results or financial conditions.

Significant Accounting Estimates

Refer to Note 3 of the Company’s audited consolidated financial statements for the year ended December 31, 2025 and 2024.

Future Changes in Accounting Policies & Initial Adoption

Certain new accounting standards and interpretations have been published that are either applicable in the current year or not mandatory for the current period.

Internal Control Over Financial Reporting

The President and Chief Executive Officer and Chief Financial Officer of the Company are responsible for designing internal controls over financial reporting or causing them to be designed under their supervision to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS.

As a result of progress made strengthening Internal Controls over Financial Reporting (“ICFR”) during the period ended December 31, 2025, management no longer feels there are significant deficiencies in its internal controls over financial reporting. Previous deficiencies noted by management have been ameliorated during 2025 and 2024.

Page 19 of 21

ELECTRA BATTERY MATERIALS CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

Management noted improvement in the following areas where significant deficiencies existed in the past:

Control Environment

The Company has added trained financial reporting and accounting personnel with appropriate skills and knowledge regarding the design, implementation, and operation of internal controls over financial reporting. The team is in the process of implementing and improving processes and procedures to identify, monitor and improve ICFR and DCP.

Procurement, Payment and Receiving Processes

The Company has improved reporting and receiving processes to ensure adherence to the Company’s policies at the Company’s Refinery project.

During the three and six months ended June 30, 2026, there were no changes in the Company’s ICFR that materially affected, or are reasonably likely to materially affect, the Company’s ICFR.

Disclosure Controls and Procedures

Disclosure controls and procedures are designed to provide reasonable assurance that information required to be disclosed in reports filed with securities regulatory authorities are recorded, processed, summarized and reported in a timely fashion. The disclosure controls and procedures are designed to ensure that information required to be disclosed by the Company in such reports is then accumulated and communicated to the Company’s management to ensure timely decisions regarding required disclosure. The Chief Executive Officer and Chief Financial Officer, along with management, have evaluated and concluded that the Company’s disclosure controls and procedures were effective and appropriately designed as at June 30, 2026.

Limitations of Controls and Procedures

The Company’s management, including the President and Chief Executive Officer and Chief Financial Officer, believes that any internal controls over financial reporting and disclosure controls and procedures, no matter how well designed, can have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance that the objectives of the control system are met.

Cautionary Statement Regarding Forward-Looking Statements

This MD&A contains certain statements that may be deemed “forward-looking statements”, including statements regarding developments in the Company’s operations in future periods, adequacy of financial resources and plans and objectives of the Company. All statements in this document, other than statements of historical fact, which address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential”, “interprets” and similar expressions, or events or conditions that “will”, “would”, “may”, “could” or “should” occur. Forward-looking statements in this document include statements regarding the advancement of the Refinery, future exploration programs, liquidity, and effects of accounting policy changes.

Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploration success, a successful outcome of the work in support of the recommissioning of the Refinery, continued availability of capital and financing, inability to obtain required regulatory or governmental approvals and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Readers are cautioned not to place undue reliance on this forward-looking information.

Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates, opinions, or other factors should change except as required by law.

Page 20 of 21

ELECTRA BATTERY MATERIALS CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED JUNE 30, 2026 AND 2025

(expressed in thousands of Canadian dollars)

These statements are based on several assumptions including, among others, assumptions regarding general business and economic conditions, the timing of the receipt of regulatory and governmental approvals for the work programs described herein, the ability of the Company and other relevant parties to satisfy stock exchange and other regulatory requirements promptly, the availability of financing for the Company’s proposed work programs on its assets on reasonable terms and the ability of third-party service providers to deliver services promptly. The foregoing list of assumptions is not exhaustive. Events or circumstances could cause results to differ materially.

Page 21 of 21

EXHIBIT 99.3

Electra Appoints Peter Rawlins as Chief Financial Officer; Reports Second Quarter 2026 Results

TORONTO, Aug. 11, 2026 (GLOBE NEWSWIRE) -- Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V: ELBM) (“Electra” or the “Company”) today announced the appointment of Peter Rawlins as Chief Financial Officer (CFO), effective August 26, 2026.

Peter brings over two decades of mining finance, capital markets and strategic advisory experience. He spent 19 years at CIBC, most recently as Managing Director, Global Mining & Forest Products in Capital Markets, where he advised mining clients on a broad range of financing, transaction and growth initiatives, including project and acquisition financings, corporate finance solutions and streaming transactions.

Peter is a seasoned banking executive covering mining clients who also has leadership experience on the corporate side, working with two junior mining companies. He is recognized for developing strong client relationships across the mining and banking communities and for helping companies evaluate financing alternatives, strengthen financial strategy and support disciplined growth.

Following CIBC, Peter subsequently served as Vice President and Treasurer at Artemis Gold helping the company secure the project financing for the Blackwater project. Most recently, he was Senior Vice President and CFO of Premium Nickel leading several successful equity financings to help maintain the drill program and recapitalization. His experience includes financial leadership at dual-listed companies, including U.S. GAAP reporting. He holds degrees from Western University, the University of Windsor and Rochester Institute of Technology.

Peter succeeds David Allen, who returned from retirement in February to serve as Interim Chief Financial Officer, having previously served as the Company’s CFO from 2023 to late 2024. Mr. Allen will continue with Electra on a part-time basis through completion of construction, working alongside the project team to support on-time, on-budget delivery of the Ontario critical minerals refinery and to mentor the Company’s finance group.

“Electra is a very different company today,” said Trent Mell, Chief Executive Officer. “We recapitalized the balance sheet, secured the funding required for the Refinery construction and restarted full-scale execution. Our immediate priority remains disciplined delivery of the refinery. At the same time, our opportunities in battery recycling and nickel processing are gaining traction, and we intend to be positioned to advance our next project as the refinery moves into production.

“Peter’s combination of project finance, capital markets and public-company experience is particularly well suited to that next phase. He brings the financial leadership and network needed both to support delivery of the cobalt refinery and to help advance and finance our broader project critical minerals pipeline. I also want to thank David Allen, who returned at an important moment and will remain with us to help see the project through.”

“What attracted me to Electra is the vision, dedication and tenacity of the leadership team,” said Mr. Rawlins. “Electra has advanced a strategically important critical-minerals project to a stage that few development companies reach. Its cobalt sulfate refinery has the potential to become an important part of North America’s battery and defense supply chains and a platform for further growth initiatives.

“I look forward to working with the team to complete the refinery as our first priority. In addition, other important priorities are strengthening the finance function by taking a disciplined approach to the balance sheet, working capital and liquidity management, project finance and capital markets, and helping transform Electra’s government and industry relationships into long-term value for shareholders. These priorities will help position the Company for the next phase of growth.”

Funding and Project Status

In October 2025, Electra completed a comprehensive recapitalization, closing a US$34.5 million equity financing and converting approximately US$40 million of its senior secured convertible notes into equity. Together with US$20 million from the U.S. Department of War and US$28 million in combined support from the Government of Canada and Invest Ontario, the Company arranged approximately US$82 million in aggregate funding for the construction of North America’s first cobalt sulfate refinery.

Construction remains on schedule and on budget. Early commissioning activities are expected to begin in the fourth quarter of 2026, with mechanical completion targeted for the second quarter of 2027 and commercial production anticipated in the fourth quarter of 2027.

Company Files Second Quarter 2026 Financial Results

Today the Company also announced the filing of its financial results for the three and six months ended June 30, 2026. During the quarter, Electra continued to advance its Ontario cobalt sulfate refinery, strengthened its funding position through a definitive C$20 million agreement with the Government of Canada and maintained financial flexibility through its capital markets initiatives. The Company also advanced its longer-term critical minerals strategy, launching an engineering study for a potential nickel refinery in the southeastern United States.

Q2 2026 Highlights:

Electra awarded additional construction contracts across key process areas, bringing the total value of refinery construction packages to approximately C$46 million.
Completed definitive documentation for C$20 million investment agreement with the Government of Canada under the Strategic Response Fund.
The Company reported cash and cash equivalents of C$36 million as at June 30, 2026, including approximately US$2.1 million in gross proceeds generated through its at-the-market equity program. Refinery construction is further supported by approximately C$65 million (US$48 million) in aggregate reimbursable government funding.

“Our focus remains on disciplined execution - advancing the refinery on schedule and within budget while maintaining the financial flexibility needed to deliver the project,” said David Allen, Interim CFO. “The progress made during the quarter and our strongly supported funding position reinforce that objective.”

The Company’s Q2 2026 financial reports are available on SEDAR+ (www.sedarplus.com) and the Company’s website (www.ElectraBMC.com).

About Electra Battery Materials

Electra is a leader in advancing North America’s critical minerals supply chain for lithium-ion batteries. 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 may contain forward-looking statements and forward-looking information (together, “forward-looking statements”) within the meaning of applicable securities laws. All statements, other than statements of historical facts, are forward-looking statements, including statements regarding the approved construction budget and its sufficiency; project milestones such as contract awards, site mobilization, commissioning, mechanical completion, commercial production and ramp-up; targeted throughput and production volumes; additional capital required for commissioning and working capital; engineering studies and incremental investments; availability of equipment, reagents, feedstock and other inputs; commercial arrangements; and the availability and timing of governmental or other financial support. Generally, forward-looking statements can be identified by the use of terminology such as “plans”, “expects', “estimates”, “intends”, “anticipates”, “believes” or variations of such words, or statements that certain actions, events or results “may”, “could”, “would”, “might”, “occur” or “be achieved” or similar expressions and are based on current assumptions and expectations. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, and opportunities to differ materially from those implied by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements are set forth in the management discussion and analysis and other disclosures of risk factors for Electra Battery Materials Corporation, at www.sedarplus.com and on EDGAR at www.sec.gov. Although Electra Battery Materials Corporation believes that the information and assumptions used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed times frames or at all. Except where required by applicable law, Electra Battery Materials Corporation disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

EXHIBIT 99.4

Form 52-109F2

Certification of Interim Filings

Full Certificate

I, Trent Mell, Chief Executive Officer of Electra Battery Materials Corporation, certify the following:

Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Electra Battery Materials Corporation (the “issuer”) for the interim period ended June 30, 2026.

No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.

Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings

(a)

designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i)

material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

(ii)

information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b)

designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.

5.1

Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is Risk Management and Governance: Guidance on Control (COCO Framework), published by The Canadian Institute of Chartered Accountants.

5.2

ICFR – material weakness relating to design: “N/A”

5.3

Limitation on scope of design: “N/A”

Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on April 1, 2026 and ended on June 30, 2026 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: August 12, 2026

“Trent Mell”                                      

Trent Mell

Chief Executive Officer

EXHIBIT 99.5

Form 52-109F2

Certification of Interim Filings

Full Certificate

I, David Allen, Chief Financial Officer of Electra Battery Materials Corporation, certify the following:

(a)

designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i)

material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

(ii)

(b)

5.1

5.2

ICFR – material weakness relating to design: “N/A”

5.3

Limitation on scope of design: “N/A”

Date: August 12, 2026

“David Allen”                               

David Allen

Chief Financial Officer

Source: View Original Filing on SEC EDGAR

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Electra Battery Materials (NASDAQ: ELBM) turns profit and advances cobalt refinery

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