Wedoany.com Report-Oct. 25, Electra Battery Materials (NASDAQ, TSXV: ELBM) announced that it is now fully funded to complete the construction and commissioning of North America’s first cobalt sulfate refinery. On Wednesday, the Canadian battery metals developer confirmed the closing of a $34.5 million financing and a $40 million debt equitization, which the company described as a “major transformation” of its balance sheet and funding outlook.

The Electra Battery Metals refinery near Temiskaming Shores, Ontario.

With over $80 million secured through private investment and government commitments, Electra has obtained all capital necessary to finish the refinery in Temiskaming Shores, Ontario. The facility is considered a critical asset for strengthening regional battery and defense supply chains.

Electra CEO Trent Mell stated: “With construction of our cobalt refinery now fully funded and our balance sheet reset, we are entering the execution phase with the resources and focus needed to deliver North America’s first cobalt sulfate facility. This marks a turning point for Electra and a critical step in reducing foreign dependence in the battery supply chain.” Mell emphasized that more than 90% of global cobalt sulfate production currently comes from China, highlighting the need for “a resilient, transparent, and domestically controlled supply chain” for sectors such as automotive, defense, energy, and infrastructure.

During the construction phase, Electra also plans to advance several additional projects, including a cobalt project in Idaho that could provide a future U.S.-sourced feedstock, as well as a black mass recycling program to recover critical minerals from production scrap. Both initiatives are part of the company’s strategy to build a domestic supply chain for essential battery materials.

The refinery, once operational, is expected to produce up to 6,500 tonnes of battery-grade cobalt sulfate annually, sufficient to support the production of batteries for approximately one million electric vehicles or to supply strategic sectors including national defense, energy storage, and grid infrastructure. The $250 million facility’s construction had been delayed since August 2023 due to cost overruns and supply chain challenges, with around $60 million previously still required to complete the project.

Electra has received federal support from both Canada and the United States, including a $20 million award from the U.S. Department of Defense and a recent C$17.5 million funding commitment from the Canadian government. The $34.5 million financing involved the issuance of 46 million units at $0.75 per unit and is part of a previously announced debt-to-equity restructuring. Combined with the $40 million debt equitization, this reduces the company’s total debt from $67 million to $27 million and simplifies its capital structure.

Following the financing announcement, Electra Battery Materials’ shares fell 4.8% by midday Thursday in Toronto, giving the company a market capitalization of C$39.5 million ($28.2 million). The company is now entering the execution phase, aiming to bring the refinery online and contribute to a more resilient North American battery materials supply chain.