Electra Battery Materials Corporation (TSX-V:ELBM, NASDAQ:ELBM) said it has successfully recycled plant-scale black mass material for the first time in North America, using its proprietary hydrometallurgical process at its refinery north of Toronto.
Through the process, the company recovered metals including nickel, cobalt, and manganese which are key for the electric vehicle (EV) battery supply chain. Electra’s recoveries are believed to be the first successful production in a plant-scale setting using a hydrometallurgical process.
“Initial results from our black mass trial are extremely encouraging,” said Trent Mell, CEO of Electra in a statement.
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“The results validate that our proprietary hydrometallurgical process is able to recover high-value elements from shredded lithium-ion batteries effectively and confirm that the commissioning work we have completed to date has made our refinery operational again after being idle for more than a decade.”
Black mass is the industry term used to describe the material remaining once expired lithium-ion batteries are shredded and all casings removed.
“These preliminary results represent a significant milestone for the company and the industry as we believe it marks the first hydrometallurgical plant-scale recycling of black mass in North America and the first recovery of a mixed hydroxide nickel and cobalt product. These results pave the way for us to extend our trial beyond the 75 tonnes we initially planned and maximize the cashflow opportunities generated through the sale of multiple products critical to the EV battery supply chain in North America. We have established relations with black mass producers in North America and abroad to support our continued efforts,” added CEO Mell.
Electra launched its black mass demonstration plant at the end of December 2022, and has processed material in a batch mode, successfully extracting nickel, cobalt, manganese, copper, lithium, and graphite.
The total amount of material to be processed and recovered through June will be determined in the coming weeks. All of Electra’s recovered material will be sold to third-party companies for additional processing and re-use in a number of applications.
Refinery Project Update
Electra also said it has made continued progress on commissioning and constructing its cobalt refinery project despite ongoing supply chain disruptions and delivery delays to critical pieces of equipment.
The company said that through February 10, 2023, its progress can be measured by several key developments, including:
- Completed all testing of existing brownfield equipment.
- Completed 90 to 95% of all procurement.
- Completed 90 to 95% of detailed engineering.
- Completed approximately 90% of the erection of the solvent extraction plant.
- Completed construction of the cobalt sulfate loadout facility.
- Increased the project owners’ team to 31 personnel, which include tradespeople, engineers, operators, lab technicians, and office support staff.
Due to microchip supply disruptions and damage to critical equipment en route to the company’s complex north of Toronto, Electra said it has withdrawn its guidance issued on August 11, 2022, and November 9, 2022, for its fourth quarter ending December 31, 2022, along with any forward-looking statements. In light of recent developments, Electra said it is completing a review of the refinery project scope, scheduling, and capital expenditures and expects to provide results in the coming weeks.
“While we evaluate a number of options, including the procurement of equipment from alternative sources of supply, construction has progressed ahead of equipment deliveries. Site-level leadership is completing a baseline review of the project and the company anticipates providing an update in conjunction with our year-end results to be issued before the end of March,” said Mell.
Electra Battery Materials is a processor of low-carbon, ethically-sourced battery materials. Currently commissioning North America’s only cobalt sulfate refinery, Electra is executing a multipronged strategy focused on onshoring the EV supply chain.
Contact the author at jon.hopkins@proactiveinvestors.com