Electra Battery Materials Corporation (TSX-V:ELBM, OTCQX:ELBMF) has updated on the building of North America's only battery grade cobalt refinery, saying the foundations for the solvent extraction plant had begun and the project remains on budget at US$67 million, and on schedule to be commissioned in December 2022.
All earthworks for the plant were completed late last year, and the pre-engineered building is expected to be completed by the end of April, added the firm.
All long lead equipment orders have been placed and the build out of the cobalt crystallizer circuit will begin in the coming weeks, with the arrival of key equipment between April and June.
"Existing supply chain pressures have been further exacerbated over the past month by the resurgence of COVID in China and the Russian war in the Ukraine," the company noted.
"Early in the procurement process, Electra made the strategic decision to order long lead items from jurisdictions deemed less likely to experience supply chain interruptions. This has proven to be a sound strategy as our current timeline remains in line with the original schedule," it added.
READ: Electra Battery Materials says its cobalt refinery remains on budget and on schedule for commissioning this December
"Our team has been focused on both the recommissioning of our existing refinery equipment and preparing the site for the construction of the new solvent extraction and crystallizer plant facilities," said Mark Trevisiol, the vice-president of project development, in a statement.
CEO Trent Mell added: "Canada is becoming a key player in the midstream of the North American electric vehicle supply chain. Recent investment decisions by some of the largest players in the EV industry continue to validate our early-mover strategy.
"While our team continues to deliver on the recommissioning of the refinery, we are aggressively pursuing commercial partnerships and growth opportunities to deliver value to shareholders."
Electra Battery Materials wants to produce enough material to supply batteries for up to 1.5 million electric vehicles a year and is building a four-phase battery materials park hosting cobalt and nickel sulfate production plants, a large-scale lithium-ion battery recycling facility, and a battery precursor materials partnership.
The cobalt plant will be the first phase of the Battery Materials Park project. In coming years, Electra intends to build further processing capacity for nickel sulfate, recycling of primary and secondary battery scrap materials and precursor production.
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