Electra Battery Materials Corporation (TSX-V:ELBM, OTCQX:ELBMF) has announced the launch of a battery materials park study in partnership with the government of Ontario, Glencore PLC, and Talon Metals Corp. (TSX:TLO)
The consortium will collaborate on engineering, permitting, socio-economic, and cost studies associated with the construction of a nickel sulfate plant as well as a battery precursor cathode active materials (PCAM) plant adjacent to Electra's cobalt refinery and recycling plant.
The company noted that the realization of this vision would result in the creation of North America's first integrated, localized, and environmentally sustainable battery materials park for the electric vehicle (EV) market.
READ: Electra Battery Materials says its cobalt refinery remains on budget and on schedule for commissioning this December
"We are excited to partner with the Government of Ontario, Glencore, and Talon on this Battery Materials Park project," said Electra CEO Trent Mell in a statement.
"Ontario is home to North America's only battery grade cobalt refinery, an abundance of nickel and clean hydroelectric power. Together we can leverage Electra's existing footprint and the Government of Ontario's ambitions to build a world-class battery supply chain in the province. The Government has been one of our biggest champions and we are grateful for their support."
Electra said the C$700,000 study will be funded by the government and the three participating companies, with the provincial government contributing C$250,000, matched by a $250,000 investment from Electra and C$100,000 each from Glencore and Talon Metals
Glencore is one of the world's largest nickel producers and Electra's refinery is located two hours from the Sudbury Basin, one of the world's largest sources of low-carbon nickel. Talon Metals is developing the high-grade Tamarack nickel-copper-cobalt project in central Minnesota under a joint venture with Rio Tinto.
Electra said the study also targets the construction of much-needed North American precursor manufacturing capacity, which would yield significant cost and carbon footprint advantages through integration with refining operations. Electra is in discussion with several PCAM manufacturers and intends to partner with an established producer for this last piece of an integrated and domestic battery materials park
Battery materials produced from this site are anticipated to have an exceptionally low carbon footprint, due to reliance on renewable hydroelectric power and proximity to feed materials and end markets
Electra said it is pursuing a four-phased approach to build North America's first battery materials park, with a battery-grade cobalt sulfate refinery to be commissioned in December 2022 and a battery recycling circuit scheduled for 2023, followed by battery-grade nickel sulfate and PCAM by mid-decade.
The objective of the joint study is to assess the technical, financial, and permitting requirements for the construction of a battery-grade nickel sulfate refinery and a PCAM facility located near the company's hydrometallurgical facility in Ontario.
Discussions with overseas producers
Meanwhile, Electra said it is in discussion with PCAM producers in Europe, Japan, and Korea, several of which are assessing expansion opportunities in North America. One or more PCAM companies may participate in this study at a future date.
Electra recently commissioned CRU, an independent commodity research company to estimate the potential carbon emissions from Electra's proposed nickel-sulfate refinery. The study found that carbon emissions from a Chinese nickel sulfate operation relying on Indonesian raw material feed would be up to three times higher than material produced in Canada. The same report highlights the imminent need for North American cobalt sulfate, nickel sulfate, and precursor capacity to keep pace with the rapid build-out of cell manufacturing on the continent.
Funding for this study is the second investment made by the government of Ontario in support of Electra's business activities, following a C$5 million grant from Ontario to fast-track the restart of the existing refinery complex. The study will be completed in phases, with results expected in the third and fourth quarters of 2022.
Electra's business strategy is to produce sufficient battery material to supply 1.5 million EV batteries on an annual basis.
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