Electra Battery signs term sheet for $17.5M funding

Executive Summary

• Electra Battery Materials Corp. signed a term sheet with Invest Ontario for up to C$17.5 million in proposed funding, part of a total C$100 million investment to build North America’s first battery‑grade cobalt sulphate refinery.
• The financing is one component of an estimated $48 million (U.S.) government support package (~C$64 million) that also includes prior U.S. Department of Defence and Canadian government contributions.
• The funding will help complete construction of a facility capable of producing 6,500 t/yr of cobalt sulphate, creating >50 jobs and supporting up to one million EVs per year.

Key Details

• Funding Amount: C$17.5 million (proposed) from Invest Ontario; part of a C$100 million refinery construction budget.
• Total Government Support: Approximately $48 million U.S. (~C$64 million) when combined with prior U.S. and Canadian commitments.
• Project Scope: Construction of a 6,500‑tonne per year cobalt sulphate refinery in Temiskaming Shores, Ontario – the first dedicated battery‑grade facility in North America.
• Job Creation: Expected >50 permanent jobs at the new refinery.
• Strategic Importance: Aims to reduce reliance on Chinese cobalt supply (which currently provides >90 % of global cobalt sulphate) and bolster North American EV battery supply chains.
• Financing Structure: Term sheet is non‑binding; final definitive agreements still pending.
• Related Financing Activities:
• Replacement of a previously announced $20 million U.S. strategic corporate investment (Sept 10, 2024).
• Ongoing restructuring to cut convertible debt by ~60 % and raise ~$30 million U.S. in equity.
• Future Growth Plans: Feasibility study for an adjacent battery‑recycling refinery; consideration of a second cobalt sulphate plant in Bécancour, QC, and a North American nickel sulphate facility.

Notable Quotes

“We are focused on completing North America's first cobalt sulphate refinery and unlocking the jobs and economic activity that come with it,” – Trent Mell, CEO, Electra Battery Materials Corp.

“Electra's investment in Temiskaming Shores will establish an integral link in the province's critical mineral processing supply chains…” – Vic Fedeli, Minister of Economic Development, Job Creation and Trade (Ontario).