Electra approves $73M (U.S.) construction budget

Executive Summary

• Electra Battery Materials Corp. has approved a $73-million (U.S.) construction budget and established a detailed execution schedule for its North American cobalt sulfate refinery near Toronto.
• The project targets mechanical completion in Q2 2027 and commercial production by Q4 2027, with commissioning activities expected to begin in Q4 2026.
• The company has secured approximately $82-million in aggregate financial support, including $48-million in government grants/loans and $34-million in equity financing, with total committed capital exceeding the construction budget.

Key Details

• Budget: Approved construction budget of $73-million (U.S.) / $100-million (Canadian), covering all remaining construction activities through mechanical completion.
• Schedule Milestones:
  • Q1 2026: Award of SMPEI contract (structural, mechanical, piping, electrical, and instrumentation).
  • Q2 2026: Full site mobilization.
  • Q4 2026: Early commissioning of select utilities and circuits.
  • Q2 2027: Mechanical completion.
  • Q3 2027: Start of production ramp-up.
  • Q4 2027: Commercial production.
• Financing:
  • Total committed capital of ~$82-million, comprising $48-million in government grants/loans and $34-million in equity financing completed in October 2025.
  • Discussions underway with lenders of the senior secured credit facility to amend terms, allowing for up to $27-million of debt financing from government entities.
  • Commissioning and ramp-up expenditures anticipated at ~$15-million (U.S.) / $20.5-million (Canadian), to be managed through available liquidity and working capital facilities.
• Production Capacity:
  • Initial nameplate capacity: 5,120 tonnes per annum of contained cobalt in battery-grade cobalt sulfate.
  • Crystallizer circuit nameplate capacity: 6,500 tonnes per annum, allowing for a ~27% expansion.
  • Target to reach full 6,500-tonne capacity in 2028 via optimization and debottlenecking.
• Market Position & Demand:
  • Refinery expected to represent ~27% of world supply (excluding China) and ~5% of total global cobalt sulfate supply at full capacity.
  • Global cobalt demand added ~8,900 metric tonnes in 2025, with ~9,200 metric tonnes forecast for 2026.
  • Lithium-ion battery sector grew 29% year-over-year in 2025, reaching 1.59 terawatt-hours.
• Commercial Agreements:
  • Long-term tolling arrangement framework with LG Energy Solution, expected to account for ~60% of initial production over the first five years.
  • Feedstock supply arrangements with Glencore and other established operators.
• Construction Status:
  • Construction restart activities commenced Q4 2025.
  • Major mechanical and electrical equipment procured; long-lead items delivered.
  • Recent work includes installation of pipe racks, clarifier tanks, power infrastructure upgrades, and site preparation.
  • Facility is a fully permitted brownfield site with existing infrastructure.

Notable Quotes

• "Our mandate is clear. We are advancing this refinery to completion with a defined budget, schedule and execution plan... With major equipment procured and construction sequencing defined and baselined, we are positioned to transition from reactivation to full execution." — Trent Mell, CEO
• "Cobalt refining is a strategic capability for North America... By bringing this facility into commercial operation in 2027, we will establish the only battery-grade cobalt sulphate production capacity in the region, strengthening allied supply chains and anchoring critical minerals partnerships within North America." — Trent Mell, CEO