Electra Awarded $5 Million from Government of Canada to Advance Development of Proprietary Battery Metals Recycling Technology
Electra Battery Materials has received $5 million from Natural Resources Canada to advance its proprietary battery metals recycling technology. In 2023, the company processed over 40 tonnes of battery scrap, producing high-quality nickel, cobalt, and lithium. The funding will support continuous demonstration of the scalability and profitability of Electra's hydrometallurgical process. The project will take place at the company's facility in Temiskaming Shores, Ontario. This initiative is part of Electra's growth strategy, alongside the construction of North America's only cobalt sulfate refinery. The recycling technology could significantly impact the EV supply chain by reducing greenhouse gas emissions and reliance on foreign minerals.
- Received $5 million in funding from Natural Resources Canada.
- Successfully operated a recycling demonstration plant, processing over 40 tonnes of battery scrap.
- Produced high-quality nickel, cobalt, and lithium, demonstrating the efficacy of the recycling process.
- The project aims to show that the recycling process is scalable and profitable.
- Located at a fully permitted facility in Temiskaming Shores, Ontario.
- Supports the construction of North America's only cobalt sulfate refinery.
- Potential to reduce greenhouse gas emissions in the EV supply chain.
- Decreases reliance on foreign countries for critical minerals.
- Strengthens development timelines through partnerships with government and industry.
- Plans for a battery material shredding facility in Ontario.
- Additional capital required to recommission and expand the cobalt refinery.
- Dependent on continuous funding and support from government and industry.
- Potential risks related to the scalability and profitability of the hydrometallurgical process.
- Uncertainty around the ability to isolate cobalt from nickel in the MHP product.
- Recovery rates and metal content improvements still in demonstration phase and not fully optimized.
Insights
The $5 million funding from Natural Resources Canada represents a significant step forward for Electra Battery Materials Corporation's proprietary battery materials recycling technology.
Electra's successful 2023 demonstration plant processed over 40 tonnes of 'black mass' to produce commercial products. This success, coupled with the new funding, positions the company well in the growing EV supply chain market, reducing North America's reliance on foreign minerals. Investors should note the potential for increased revenue if the continuous processing phase proves the technology to be scalable and profitable.
The strategic location of the project in Temiskaming Shores, Ontario and collaborations with entities like Three Fires Group, further solidify Electra's intent to be a key player in North America's critical mineral supply chain. However, the company's priority remains securing capital to recommission and expand its cobalt refinery, which could introduce financial challenges if not managed carefully.
Short-term, this funding can catalyze technological advancements and potentially attract further investments. Long-term, scaling up recycling capabilities could position Electra as a pivotal player in the sustainable EV supply chain, provided they can maintain financial discipline and execute their expansion effectively.
Electra’s proprietary hydrometallurgical process for recycling 'black mass' represents a notable technological advancement. This method is different from traditional pyrometallurgical processes, which involve high temperatures and energy usage. Hydrometallurgy uses aqueous chemistry for metal recovery, making it more environmentally friendly by reducing carbon emissions and energy consumption.
During their demonstration phase, Electra successfully increased metal content in their mixed hydroxide precipitate (MHP) and improved recovery rates for critical metals like manganese. These improvements not only boost the economic viability of the recycling process but also enhance the value of the final products, making them more appealing to battery manufacturers looking for sustainable and cost-effective sources of raw materials.
The ambitious goal of isolating cobalt from nickel within the MHP product could revolutionize the recycling industry by increasing the purity and value of recovered metals. If successful, this could set a new industry standard and offer significant competitive advantages. Electra’s focus on optimizing process parameters and reagent consumption indicates a commitment to making their technology not just effective, but also economically sustainable.
In a sector that highly values innovation and efficiency, Electra’s advancements could have far-reaching implications, potentially leading to widespread adoption of their technology. However, the scalability of this process remains a critical factor, which will be tested during their continuous operation phase.
(All amounts in CAD dollars unless otherwise stated)
In 2023, the Company successfully operated a battery materials recycling demonstration plant in a batch process at its refinery complex, processing more than 40 tonnes of end-of-life battery scrap, known as “black mass,” and producing high-quality nickel, cobalt and lithium products.
Building on this success, Electra is accelerating the next phase of its recycling project to demonstrate on a continuous basis that the Company’s hydrometallurgical black mass process is scalable, profitable, and can be implemented at other locations. The Government of
“Today’s funding announcement is a clear signal from the Government of
“Recycling of battery materials will become more critical as the EV industry expands within North America,” Mell continued. “We are strengthening our development timelines through our partnerships with government and industry, such as with Three Fires Group with whom we are exploring developing a battery material shredding facility in
The Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources, said, “Today’s total investment of
Viviane Lapointe, Member of Parliament for
Finally, Marc G. Serré, Member of Parliament for Nickel Belt, Parliamentary Secretary to the Minister of Energy and Natural Resources, and Parliamentary Secretary to the Minister of Official Languages, said, "The increasing demand for critical minerals and the products made from them provides Nickel Belt –
The announcement was made in
North of
Electra’s 2023 battery materials recycling demonstration program is believed to be the first plant-scale recycling of black mass material in
During the year-long recycling trial, recovery rates for all targeted metals improved with recovery for manganese improving by more than
Today’s federal funding from Natural Resources Canada will allow Electra to continue testing its black mass refining to optimize the process parameters and reagent consumption as well as maximize percent recovery of critical metals and their quality. The Company will also explore the potential of isolating cobalt from nickel contained in the MHP product to improve the overall payability of both the resultant cobalt and nickel product. Ultimately, this program will support commercial discussions with battery cell manufacturers seeking North American-based solutions for a circular supply chain.
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. Keys to its strategy are integrating black mass recycling, expanding cobalt sulfate processing into
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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. Among the bases for assumptions with respect to the potential for additional government funding are discussions and indications of support from government actors based on certain milestones being achieved. 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 cause 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.
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Electra Battery Materials
Heather Smiles
Vice President, Investor Relations & Corporate Development
info@ElectraBMC.com
1.416.900.3891
Natural Resources Canada
Media Relations
343-292-6100
media@nrcan-rncan.gc.ca
Carolyn Svonkin
Press Secretary
Office of the Minister of Energy and Natural Resources Canada
343-597-1725
carolyn.svonkin@nrcan-rncan.gc.ca
Source: Electra Battery Materials Corporation
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