Electra Battery Materials is starting an “early work program” this summer at its unfinished cobalt refinery in Temiskaming.
In a news release, the Toronto company said this is preparatory work that’s geared toward a full-scale construction restart at the site, north of the town of Cobalt, sometime in the future.
Electra is short $60 million to finish the job. They acquired the former Yukon refinery in 2017 and have spent millions refurbishing and enlarging it to transition the once-mothballed mill to produce cobalt sulfate, a key ingredient used to make lithium-ion batteries. It would be the first refinery of its kind in North America.
With money tight and all kinds of supply chain difficulties, Electra halted construction in 2023.
The company said it’s making progress toward completing the remaining financing needed to bring the refinery into commercial production.
Once the full funding package is secured, it will take about two years to finish construction.
The company has budgeted $750,000 this summer to work on the solvent extraction (SX) area of the plant. It’s considered a key piece of the hydrometallurgical refining circuit.
Some of that money is being tapped from the US$20 million grant Electra secured last August from the U.S. Department of Defense.
More money is on the table. Just before last winter’s federal election, Ottawa delivered a non-binding letter of intent for $20 million for construction.
But Electra remains on the hunt for a strategic funding partner or to strike an off-take agreement with a customer that will provide some upfront financing.
In a statement, Electric vice-president Mark Trevisiol said this work program is a critical step in moving the refinery site back into construction mode.
“By focusing on key infrastructure, particularly in the SX area, we are ensuring the site is ready for a seamless ramp-up as soon as full funding is in place.”
The company said contractors will be relocating and installing SX processing equipment, pouring the concrete base for the tanks, and doing the roofing on the SX building. At the same time, tender preparation and engineering support activities are starting to prepare for construction.
“The early works program enables us to build critical infrastructure and maintain project momentum while we work to finalize the remaining elements of our funding package,” said company CFO Marty Rendall in the release.
“Our early works program is a clear signal: Electra is not standing still,” said Trent Mell, CEO of Electra, in a statement. “The early works program lays the physical and operational groundwork to accelerate into full construction. We are confident in our project and its strategic importance. Preparing for the final leg of construction is a reaffirmation of our commitment to delivering North America’s only battery-grade cobalt refinery.”
