Electra Battery Materials Corporation (TSX-V:ELBM, OTCQX:ELBMF) said that construction activities at its fully integrated, environmentally sustainable cobalt sulfate refinery “continues on schedule.”
The Electra Battery Materials Park is being built north of Toronto and is designed to host cobalt and nickel sulfate production plants, a large-scale lithium-ion battery recycling facility, and the production of battery precursor materials, which will serve North American and global customers.
Electra said it has commitments in place for 52% of the US$67 million capital budget, inclusive of amounts spent to date. The Canadian company expects to approach a 70% commitment level within the next month, with the overall project currently on budget.
READ: Electra Battery Materials announces offtake agreement for recycled battery material
“Construction activity at the refinery continues on schedule. Coronavirus (COVID-19) restrictions in certain parts of the world as well as recent global geopolitical events are putting pressure on supply chains and development projects,” said the company in an update.
“Electra is closely monitoring and managing these risks with its equipment and services suppliers and thus far the project remains on schedule for commencement of commissioning late this year,” it added.
Electra said footings and foundations for the solvent extraction building were recently completed, and preparations are underway for the support of SX tanks and steel structures. The first SX modules will arrive on-site in the coming weeks, said the company.
Meanwhile, a contract for an overland piping package to access raw water was recently awarded to Pedersen Construction based on a competitive bid process. The 2.8-kilometer buried pipeline will feed water to the refinery from an existing pumphouse located at Lake Temiskaming and the pipeline will be installed over the coming months.
Battery recycling
Prior to commissioning its cobalt sulfate refinery, Electra said it plans to complete a bulk sample processing of lithium-ion battery "black mass" in the third quarter, leveraging existing refinery infrastructure. Ancillary long lead items required for this recycling demonstration plant have been ordered, said the firm.
Electra’s objective is to demonstrate the effectiveness of its process flowsheet to recover the majority of lithium, nickel, cobalt, copper and graphite content from lithium batteries before construction of its commercial plant in 2023.
Significantly, Electra’s process for treating black mass has been developed internally and an offtake agreement for nickel and cobalt produced from the recycling circuit has been signed with Glencore AG for 2023-to-2024. Offtake discussions are underway with various parties for lithium, copper and graphite production, the company said.
Personnel Update
Separately, Electra CFO Ryan Snyder has accepted a new opportunity with a senior precious metals producer and will be leaving at the end of April. Michael Insulan has been appointed interim CFO until a successor is in place.
"We are fortunate to have had someone of Ryan's caliber at Electra over the past several years. As we approach commercial production from Phase 1 of our Battery Materials Park, I am truly disappointed to see him leave but I fully respect his decision to pursue a new challenge with a global miner… and wish him well,” said Electra CEO Trent Mell.
Electra has strengthened its refinery team by adding Dr Zoran Jankovic as Process and Lab Superintendent. Zoran holds a PhD in Chemical Engineering and will support the operation of the metallurgical lab and provide guidance on leaching and neutralization circuits in the refinery process.
The company said other additions include an electrical and instrumentation technician and a human resources coordinator. Recent hires include the appointment of a VP of sustainability and low carbon, whose job is to guide the company on its journey to carbon neutrality, said Electra.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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