Electra Battery Materials Corporation (TSX-V:ELBM, NASDAQ:ELBM) said it is in early discussions with the Government of Quebec to build a new cobalt refinery in the province.
If built, the refinery will integrate with an emerging battery materials park in the province, Electra said in a statement.
The refinery would be built in Becancour, Quebec, which is an emerging hub in the battery materials supply chain in North America.
READ: Electra Battery Materials says its battery materials park project is on schedule
"Given a forecasted deficit in domestic cobalt sulfate production by 2025, we have received significant interest from industry and government stakeholders to build a second refinery in North America," said Trent Mell, CEO of Electra Battery Materials, in a statement.
"The industrial park in Becancour, Quebec is quickly becoming an important future hub for (electric vehicle) battery materials in North America given its numerous advantages, including a deep-water port, extensive infrastructure, hydro-electric power, strong support from the Quebec government, and a qualified workforce. In light of the considerable progress Electra has made towards commissioning its first cobalt sulfate refinery north of Toronto, we are a logical partner for the Becancour industrial park."
To support its discussions with the province, Electra plans to conduct a study to determine annual production requirements for the industrial park, capital costs for the refinery, flow sheet modifications for alternate sources of feed material, permitting requirements, synergies from integration with other battery materials companies in Becancour, and potential funding opportunities from the federal and provincial levels of government, according to a release.
Vale veteran to lead battery materials refinery study
Electra also said it has appointed former Vale project director David Marshal as vice president, engineering. The 31-year veteran has extensive experience in engineering studies, project management and project delivery for mineral processing and mining operations, Electra said.
CEO Mell told investors that Marshall brings “a wealth of experience” to the company, having successfully led a number of large, multimillion-dollar projects involving hundreds of personnel, contractors and suppliers, ensuring that projects were completed on time and delivered expected internal rates of return.
Marshall’s first project with Electra will be the completion of the Quebec study to determine the viability of a battery materials refinery in Becancour.
Toronto-based Electra is specifically focused on creating the first integrated battery materials park in North America, providing refined cobalt, nickel and recycled battery materials to North American battery precursor manufacturers. It also owns the advanced exploration-stage Iron Creek cobalt-copper project in Idaho.
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