Electra Battery restarts refinery build

Executive Summary

• Electra Battery Materials Corp. released its 2025 financial results, highlighting a successful recapitalization that strengthened its balance sheet and enabled the restart of construction on its cobalt sulphate refinery in Ontario.
• The company secured $82 million in aggregate funding for the refinery, including government grants and equity, and approved a $73 million U.S. construction budget with mechanical completion targeted for Q2 2027 and commercial production in Q4 2027.
• Significant operational progress includes the completion of a feasibility-level engineering study for a modular battery recycling facility, the initiation of domestic feedstock testing, and the appointment of new board members with expertise in defense and critical minerals.

Key Details

• Refinery Construction & Timeline:
  • Board approved a $73-million (U.S.) construction budget.
  • Full-scale construction reactivated in November 2025 following early works completed in September.
  • Major tender package issued for structural, mechanical, piping, electrical, and instrumentation work.
  • Mechanical completion targeted for Q2 2027; commercial production anticipated in Q4 2027.
  • Early commissioning activities expected to begin in Q4 2026.
• Financing & Capital Structure:
  • Arranged $82-million (U.S.) in aggregate funding for refinery construction:
    • $20-million (U.S.) from the U.S. Department of War.
    • $28-million (U.S.) from the Government of Canada and Invest Ontario.
    • $34-million (U.S.) in equity financing raised in October 2025.
  • Completed recapitalization converting approximately $40-million (U.S.) of convertible debt into equity, reducing outstanding debt by ~60%.
  • Established an at-the-market (ATM) equity program.
  • Cash position was $39-million as of Dec 31, 2025, and approximately $41-million as of the release date.
• Battery Recycling Initiatives:
  • Completed a feasibility-level (Class 3) engineering study for a modular battery recycling facility adjacent to the cobalt refinery.
  • Facility designed to process lithium-ion battery manufacturing scrap and end-of-life batteries.
  • Supported by a $5-million contribution from Natural Resources Canada (announced June 2024).
  • Prior to this, successfully recovered critical metals (Li, Ni, Co, Cu, Mn, Graphite) from black mass in a 2023 plant-scale trial.
• Supply Chain & Feedstock:
  • Initiated metallurgical testing of domestic cobalt feedstock from the Iron Creek project (Idaho) and the historic Cobalt camp (Ontario).
  • Signed a supply chain cooperation agreement with Positive Materials Inc. to evaluate a partnership for battery-grade cobalt sulphate.
• Corporate & Governance:
  • Appointed Paolo Toscano as Vice-President, Projects and Engineering.
  • Added four new board members: Alden Greenhouse, David Stetson, Gerard Hueber, and Jody Thomas.
  • David Allen returned as interim CFO following Marty Rendall's resignation in Feb 2026.
  • Issued 110,000 incentive stock options and 164,000 deferred share units (DSUs) under the LTIP; options exercisable at 79 cents, vesting over two years.

Notable Quotes

• "Electra is advancing the refinery through a multipackage execution strategy, engaging specialized contractors across discrete scopes rather than relying on a single general contractor... This approach reflects strong interest from high-quality partners, and provides greater control over schedule, cost and execution, positioning the company to deliver the project in a disciplined manner." — Trent Mell, Chief Executive Officer