Electra Battery Materials has secured a $5 million financing from its existing lenders that would enable the company to start certain early works and winter preparations at its proposed cobalt refinery.
Electra is currently looking to build a low-carbon hydrometallurgical cobalt refining complex in Temiskaming Shores, Ontario. Once complete, it would be the first facility of its kind in North America. The project is expected to cost around $250 million.
After a series of investments and government fundings, the required project funding was $60 million as of early September.
Once fully commissioned, Electra’s facility could produce up to 6,500 tonnes of cobalt per year, which it estimates could support the production of over 1 million electric vehicles annually. South Korea’s LG Energy Solution has announced it intends to purchase up to 80% of capacity over the first five years of operation.
“Given our objective of resuming construction shortly upon completing the project financing package, part of our preparations for the final phase of construction of North America’s only cobalt sulfate refinery is initiating some early works before winter sets in,” stated Electra CEO Trent Mell in a news release.
“Reducing heavy reliance on China in the EV materials supply chain continues to be a focus for North American policymakers,” Mell continued. “Electra’s Refinery is expected to be the first of its kind in North America, with the potential, when operating at full utilization, to produce enough cobalt sulfate for one million electric vehicles each year.”
The financing comprises $4 million in secured convertible notes and $1 million of Electra’s common shares priced at $0.543 per share. The notes can be converted into Electra shares at $0.62445 per share, representing a 15% premium.
Electra Battery Materials closed Friday’s session 4.5% higher at $0.55 apiece on the NASDAQ, for a market capitalization of approximately $31.3 million.
