Electra restarts construction at Ontario cobalt refinery

Electra Battery Materials (TSXV, NASDAQ: ELBM) said it’s resumed construction at its Ontario cobalt sulfate refinery after securing about $82 million in project financing.Work in Temiskaming Shores, 500 km north of Toronto, is now under way to advance site preparations and reinstate mechanical, electrical and instrumentation systems, with full-scale construction targeted for the start of 2026, Electra said Wednesday. Previous cost estimates are being updated to reflect inflationary impacts and work already completed, and new figures will be provided in January, the company added.Construction of the $250 million refinery has stalled since August 2023 due to cost overruns and supply chain disruptions. At the time, about $60 million was still required to complete the project. With cobalt markets improving this year on the back of export quotas imposed by the Democratic Republic of Congo, Electra has focused on raising capital to finish building the facility.“Today, government support, private investment, and industrial policy are aligned to make completion of this refinery possible and to deliver a critical asset for North America,” Electra CEO Trent Mell said in a statement. “Once operational, this refinery will prove that midstream processing can be successfully onshored, creating a foundation for future growth.”First of its kindElectra’s refinery – which is targeted for commissioning in 2027 – will be the first of its kind in North America and one of just two major facilities outside China. Designed to produce 6,500 tonnes of battery-grade cobalt annually, the plant will supply a critical input for lithium-ion battery manufacturing and other industrial and defence applications. About 90% of global cobalt sulphate production comes from China.More than half of the money raised so far, or $48 million, comes from the US, Canadian and Ontario governments. This includes a $20 million award last year from the US Department of Defense.Toronto-based Electra has an offtake arrangement with South Korea’s LG Energy Solution, one of the world’s largest battery manufacturers. The refinery will process cobalt feedstock supplied by Glencore (LSE: GLEN) and Eurasian Resources Group.Test work is also underway on North American feedstocks, including cobalt from the Idaho Cobalt Belt, to assess their suitability for future processing. The refinery’s modular design can accommodate future expansions, Electra said.Electra shares rose 7.9% to C$1.50 Wednesday morning in Toronto, boosting the company’s market value to about C$137 million ($98 million).Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com