Electra Announces $20 Million Strategic Investment Proposal
Electra Battery Materials (NASDAQ: ELBM; TSX-V: ELBM) has received a non-binding term sheet for a $20 million prepayment facility from a strategic player in the battery materials sector. This investment, if consummated, would be comprised of an immediate $10 million investment and a follow-on $10 million during the refinery's commissioning phase. The company needs an additional $60 million in capital costs to complete its $250 million cobalt facility in North America.
Electra's facility could produce up to 6,500 tonnes of cobalt per year, potentially supporting the production of over 1 million EVs annually. LG Energy Solution intends to purchase up to 80% of capacity over the first five years of operation. The company is also making progress in securing other non-dilutive financing sources, including government programs.
Electra Battery Materials (NASDAQ: ELBM; TSX-V: ELBM) ha ricevuto un termine non vincolante per un finanziamento anticipato di 20 milioni di dollari da un operatore strategico nel settore dei materiali per batterie. Se concluso, questo investimento consisterebbe in un investimento immediato di 10 milioni di dollari e un ulteriore investimento di 10 milioni durante la fase di avviamento dell'impianto. L'azienda ha bisogno di ulteriori 60 milioni di dollari in costi di capitale per completare il suo impianto di cobalto da 250 milioni di dollari in Nord America.
L'impianto di Electra potrebbe produrre fino a 6.500 tonnellate di cobalto all'anno, potenzialmente sostenendo la produzione di oltre 1 milione di veicoli elettrici all'anno. LG Energy Solution intende acquistare fino all'80% della capacità nei primi cinque anni di attività. L'azienda sta anche facendo progressi nel garantire altre fonti di finanziamento non dilutive, inclusi i programmi governativi.
Electra Battery Materials (NASDAQ: ELBM; TSX-V: ELBM) ha recibido un documento de términos no vinculante para una facilidad de prepago de 20 millones de dólares de un jugador estratégico en el sector de materiales para baterías. Esta inversión, si se materializa, constaría de una inversión inmediata de 10 millones de dólares y un seguimiento de 10 millones durante la fase de puesta en marcha de la refinería. La empresa necesita 60 millones de dólares adicionales en costos de capital para completar su instalación de cobalto de 250 millones de dólares en América del Norte.
La instalación de Electra podría producir hasta 6,500 toneladas de cobalto al año, apoyando potencialmente la producción de más de 1 millón de vehículos eléctricos anualmente. LG Energy Solution tiene la intención de comprar hasta el 80% de la capacidad durante los primeros cinco años de operación. La empresa también está avanzando en la obtención de otras fuentes de financiamiento no dilutivo, incluidos programas gubernamentales.
Electra Battery Materials (NASDAQ: ELBM; TSX-V: ELBM)는 배터리 소재 분야의 전략적 플레이어로부터 2천만 달러 미리 지급 시설에 대한 비구속 조건서를 받았습니다. 이 투자가 성사된다면, 즉각적인 1천만 달러 투자와 정제 공장 가동 중 1천만 달러 후속 투자가 포함될 것입니다. 회사는 북미에 있는 2억 5천만 달러의 코발트 시설을 완료하기 위해 추가로 6천만 달러의 자본 비용이 필요합니다.
Electra의 시설은 연간 최대 6,500톤의 코발트를 생산할 수 있으며, 이는 연간 100만 대 이상의 전기차 생산을 지원할 가능성이 있습니다. LG 에너지 솔루션은 운영 첫 5년 동안 용량의 최대 80%를 구매할 계획입니다. 회사는 또한 정부 프로그램을 포함한 다른 비희석 금융 출처 확보를 위해 진전을 보이고 있습니다.
Electra Battery Materials (NASDAQ: ELBM; TSX-V: ELBM) a reçu une feuille de termes non contraignante pour une facilité de paiement anticipé de 20 millions de dollars d'un acteur stratégique dans le secteur des matériaux de batteries. Cet investissement, s'il est conclu, comprendrait un investissement immédiat de 10 millions de dollars et un suivi de 10 millions pendant la phase de mise en service de la raffinerie. L'entreprise a besoin de 60 millions de dollars supplémentaires en coûts de capital pour compléter sa structure de cobalt de 250 millions de dollars en Amérique du Nord.
La structure d'Electra pourrait produire jusqu'à 6 500 tonnes de cobalt par an, soutenant potentiellement la production de plus de 1 million de véhicules électriques par an. LG Energy Solution a l'intention d'acheter jusqu'à 80 % de la capacité au cours des cinq premières années d'exploitation. L'entreprise fait également des progrès pour sécuriser d'autres sources de financement non dilutives, y compris des programmes gouvernementaux.
Electra Battery Materials (NASDAQ: ELBM; TSX-V: ELBM) hat ein unverbindliches Termsheet für eine Vorabfinanzierung über 20 Millionen Dollar von einem strategischen Akteur im Bereich Batterie-Materialien erhalten. Diese Investition, wenn sie zustande kommt, würde aus einer sofortigen Investition von 10 Millionen Dollar und einer weiteren Investition von 10 Millionen während der Inbetriebnahme der Raffinerie bestehen. Das Unternehmen benötigt zusätzlich 60 Millionen Dollar an Investitionskosten, um seine 250-Millionen-Dollar-Kobalt-Anlage in Nordamerika abzuschließen.
Die Anlage von Electra könnte bis zu 6.500 Tonnen Kobalt pro Jahr produzieren und potenziell die Produktion von über 1 Million Elektrofahrzeugen jährlich unterstützen. LG Energy Solution beabsichtigt, über die ersten fünf Betriebsjahre bis zu 80 % der Kapazität zu kaufen. Das Unternehmen macht auch Fortschritte bei der Sicherung anderer nicht verwässernder Finanzierungsquellen, einschließlich Regierungsprogramme.
- Received a non-binding term sheet for a $20 million prepayment facility from a strategic player
- Potential to produce 6,500 tonnes of cobalt per year, supporting over 1 million EVs annually
- LG Energy Solution intends to purchase up to 80% of capacity for the first five years
- Progress in securing non-dilutive financing sources, including government programs
- Received a $20 million award from the U.S. Department of Defense last month
- Still needs to raise an additional $60 million to complete the $250 million cobalt facility
- The $20 million strategic investment proposal is non-binding and subject to conditions
- Financing discussions are ongoing, indicating uncertainty in securing full funding
Insights
The $20 million strategic investment proposal for Electra's cobalt refinery project is a positive development, potentially covering
The company still needs to secure an additional
Investors should monitor the progression of this proposal to binding documentation and the outcome of parallel financing discussions. The strategic importance of the project in the North American EV supply chain could attract further investment, but timely completion of financing is important for project success.
Electra's cobalt refinery project addresses a critical gap in the North American battery supply chain. With over
The commitment from LG Energy Solution to purchase up to
However, investors should consider the competitive landscape and potential for new entrants in the North American cobalt refining market. Electra's first-mover advantage could be significant, but long-term success will depend on operational efficiency and ability to scale production to meet growing EV demand.
Electra's focus on a low-carbon hydrometallurgical refining process aligns with the growing emphasis on sustainable battery production. The company's experience with battery recycling through its demonstration plant in 2023 positions it well for future expansion into this critical area of the battery value chain.
The planned capacity of 6,500 tonnes of cobalt per year is significant, but it's important to consider how this aligns with projected EV growth and potential technological shifts in battery chemistry. While cobalt remains important for high-performance batteries, ongoing research into cobalt-free alternatives could impact long-term demand.
Electra's vision to include nickel production and battery recycling demonstrates a forward-thinking approach to creating a comprehensive battery materials ecosystem. This integrated strategy could provide resilience against market fluctuations in individual metals and position Electra as a key player in the circular economy for EV batteries.
(All amounts in US dollars)
TORONTO, Sept. 10, 2024 (GLOBE NEWSWIRE) -- Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V: ELBM) (“Electra” or the “Company”) today provided an update on its financing strategy for North America’s first battery grade cobalt refinery, announcing that it has received a non-binding term sheet for a
Electra CEO, Trent Mell, commented, "Interest from sophisticated strategic partners indicates strong confidence in Electra, and with the continued support of investors, governments and downstream customers, we are well-positioned to realize our vision of a North American battery materials supply chain."
The strategic investment announced today is equal to the
Electra owns a low carbon, permitted hydrometallurgical refining complex north of Toronto that historically produced nickel and cobalt. The facility is being expanded and modified to provide North America battery makers with a domestic source of cobalt sulfate for lithium-ion batteries. The refining complex was also the location of a year-long battery recycling demonstration plant in 2023. The Company estimates that an additional
If consummated, the investment would be comprised of an immediate investment of
Electra continues to make steady progress in securing other non-dilutive sources of financing, including government programs, to complete the construction and commissioning of the refinery. Once fully commissioned, Electra’s facility could produce up to 6,500 tonnes of cobalt per year, which could support the production of over 1 million EVs annually. LG Energy Solution intends to purchase up to
At this time, the strategic investment term sheet is a non-binding proposal, and a confirmation of the proposal was received on September 3, 2024. The progression to binding documentation is subject to finalization of diligence and negotiation of customary closing materials and is progressing in line with all parties’ agreed timeline. Discussions with other strategic partners are expected to continue until today’s proposal becomes binding.
Electra’s near-term priority is to recommission and expand its low carbon Canadian cobalt refinery, which has already been derisked through the delivery of long lead equipment and the operation of a black mass demonstration plant in the legacy refinery. The Company’s longer-term vision includes nickel production and battery recycling, thereby onshoring additional critical mineral refining processes needed for the North American electric vehicle battery supply chain.
Company Update
The Company also announces that in accordance with its Long-Term Incentive Plan approved by shareholders at its August 13, 2024 annual general meeting, it has granted an aggregate of C
About Electra Battery Materials
Electra is a processor of low-carbon, ethically-sourced battery materials. Currently focused on developing North America’s only cobalt sulfate refinery, Electra is executing a phased strategy to onshore the electric vehicle supply chain and provide a North American solution for EV battery materials refining. In addition to building North America’s only cobalt sulfate refinery, its strategy includes integrating black mass recycling, potential cobalt sulfate processing in Bécancour, Quebec, and exploring nickel sulfate production potential within North America. For more information, please visit www.ElectraBMC.com.
Contacts
Heather Smiles
Vice President, Investor Relations & Corporate Development
Electra Battery Materials
info@ElectraBMC.com
1.416.900.3891
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
This news release may contain forward-looking statements and forward-looking information (together, “forward-looking statements”) within the meaning of applicable securities laws and the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, are forward-looking statements. Generally, forward-looking statements can be identified by the use of terminology such as “plans”, “expects”, “estimates”, “intends”, “anticipates”, “believes” or variations of such words, or statements that certain actions, events or results “may”, “could”, “would”, “might”, “occur” or “be achieved”. Forward-looking statements are based on certain assumptions, and involve risks, uncertainties and other factors that could cause actual results, performance, and opportunities to differ materially from those implied by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements are set forth in the management discussion and analysis and other disclosures of risk factors for Electra Battery Materials Corporation, filed on SEDAR+ at www.sedarplus.com and with on EDGAR at www.sec.gov. Other factors that could lead actual results to differ materially include changes with respect to government or investor expectations or actions as compared to communicated intentions, and general macroeconomic and other trends that can affect levels of government or private investment. Although the Company believes that the information and assumptions used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed times frames or at all. Except where required by applicable law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
FAQ
What is the value of the strategic investment proposal received by Electra Battery Materials (ELBM)?
How much additional capital does Electra Battery Materials (ELBM) need to complete its cobalt facility?
What is the potential annual cobalt production capacity of Electra Battery Materials' (ELBM) facility?
Who is the major customer for Electra Battery Materials' (ELBM) cobalt production?
