Electra Battery Materials Corporation (TSX-V:ELBM, NASDAQ:ELBM) said it has progressed considerably on its strategy and each of its primary objectives during 3Q, with the Inflation Reduction Act proving to be an important tailwind for the battery materials company’s near-term prospects.
Operational highlights for the quarter ended September 30, 2022, include the signing of a three-year definitive agreement to supply 7,000 tonnes of battery-grade cobalt to electric vehicle battery manufacturer LG Energy Solution and progress toward the launch of a black mass recycling demonstration plant at its Ontario refinery complex.
The company also confirmed cobalt mineralization at its Ruby prospect, located 1.5 kilometres from its primary Iron Creek deposit in the Idaho cobalt belt, and completed a scoping study on the production of nickel sulphate at its battery materials refinery complex that suggested compelling economics.
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Electra CEO Trent Mell commented: “This progress is considerable for a company of our size and is indicative of the level of commitment by our employees to sustain the first mover advantage Electra has established.”
Mell added that the adoption of the US Inflation Reduction Act, which provides strong incentives for the onshoring of the electric vehicle battery supply chain, was already proving to be an important tailwind for Electra’s near-term prospects.
“In the coming weeks, we expect to launch our black mass recycling demonstration plant where we will apply our lab-tested hydrometallurgical process to separate up to 75 tonnes of high-value material contained in recycled lithium-ion batteries into discrete metals, including nickel, cobalt, copper, graphite and lithium, for resale and new cashflow opportunities,” he said.
“This demonstration plant will run in parallel with the ongoing commissioning of our cobalt sulphate refinery, the first of its kind in North America, which is expected to be completed in the spring of 2023.”
Total costs incurred for the refinery construction project during the third quarter were $18.8 million.
Further, the company narrowed its net loss to $7.6 million or $0.24 per share during the quarter, compared to a loss of $10.5 million or $0.37 per share in 3Q 2021.
Electra is a processor of low-carbon, ethically sourced battery materials. The company is currently commissioning North America’s only cobalt sulphate refinery.
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