Electra Battery Secures $5 Million in Financing to Advance Cobalt Refinery Early Works
Electra Battery Secures $5 Million in Financing to Advance Cobalt Refinery Early Works

Electra Battery Secures $5 Million in Financing to Advance Cobalt Refinery Early Works

  • 29-Oct-2024 12:30 AM
  • Journalist: Thomas Jefferson

Electra Battery Materials has successfully secured $5 million in financing from its existing lenders, enabling the company to kick off early works and winter preparations for its proposed cobalt refinery. This facility aims to create a low-carbon hydrometallurgical cobalt refining complex in Temiskaming Shores, Ontario, which will be the first of its kind in North America. The estimated total project cost is approximately $250 million.

As of early September, Electra was actively seeking $60 million in funding to advance the project, building on previous investments and government support. Once operational, the refinery is expected to produce up to 6,500 tonnes of cobalt annually, which could support the production of over 1 million electric vehicles (EVs) each year. Significantly, South Korea’s LG Energy Solution has indicated plans to purchase up to 80% of the refinery’s output during the first five years of operation, highlighting the project's strategic importance in the EV supply chain.

Electra CEO Trent Mell underscored the urgency of advancing the project, stating, “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 sulcate refinery is initiating some early works before winter sets in.” He pointed out the critical need to reduce reliance on China for EV materials, stressing that Electra’s refinery will be pivotal in bolstering North American efforts to establish a more self-sufficient supply chain for battery materials.

The financing arrangement includes $4 million in secured convertible notes and $1 million in common shares of Electra, priced at $0.543 per share. The convertible notes can be converted into Electra shares at a price of $0.62445 per share, representing a 15% premium.

This financing marks a pivotal step for Electra as it strives to position itself as a leader in the North American cobalt refining sector, addressing the growing demand for sustainable and reliable sources of essential battery materials.

In addition to the cobalt refinery, Electra is exploring various strategic partnerships and collaborations to enhance its technological capabilities and streamline its operations. The company is also actively engaging with policymakers and stakeholders to promote initiatives that support domestic battery materials production, which is increasingly crucial for achieving sustainability targets and advancing the electric vehicle market. As Electra progresses with its plans, it aims to not only meet the demands of the EV sector but also contribute to the overall growth and stability of the North American battery supply chain.

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Electra Battery Secures 5 Million in Financing to Advance Cobalt Refinery Early Works
  • 29-Oct-2024 12:30 AM
  • Journalist: Thomas Jefferson