Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V:
ELBM) (“Electra”, “Company”) and Eurasian Resources Group
S.A.R.L. (“ERG”), a leading diversified natural resources group
headquartered in Luxembourg, announced today that they have signed
a binding letter of intent for long-term supply of ERG’s cobalt
hydroxide to North America’s first battery grade cobalt sulfate
refinery. The agreement, effective April 1, 2024, supports efforts
to onshore the battery supply chain and reduce reliance on foreign
refiners.
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Trent Mell & Benedikt Sobotka in
February 2024 (Photo: Business Wire)
- Starting from 2026, under the three-year supply agreement, ERG
will deliver 3,000 tonnes per annum of IRA-compliant cobalt to
Electra’s refinery north of Toronto
- With this agreement, Electra has sufficient cobalt hydroxide
feed material to meet all of the refinery’s annual capacity
- Cobalt will come from ERG’s Metalkol operation in the
Democratic Republic of the Congo, one of the largest cobalt
hydroxide facilities globally
- Further collaboration is under consideration for Electra’s
plans to build a second cobalt refinery in Bécancour, Quebec
Under the United States Inflation Reduction Act (IRA), electric
vehicles containing critical minerals sourced from Foreign Entities
of Concern will not qualify for the US$7,500 electric vehicle
credit starting in 2025. These and other incentives are intended to
support the strategic imperative of establishing a domestic EV
battery supply chain in the U.S. and Canada.
“Partnering with a recognized leader in sustainable mining
practices is essential for Electra to produce secure, clean, and
ethically sourced battery materials,” said Electra’s CEO, Trent
Mell. “Electra’s Canadian refinery is uniquely positioned as North
America’s first cobalt sulfate refinery, with IRA-compliant
feedstock to support growing EV demand. We are very proud to have
ERG, one of the best cobalt hydroxide suppliers in the world, as a
partner.”
“ERG is a responsible global player who supports the green
energy transition. Electra was one of the first companies to
achieve localisation of the upstream supply chain, supporting the
industry’s move towards an entirely integrated battery supply model
and putting battery metals at the core of industry's related
efforts,” said Benedikt Sobotka, ERG’s CEO and Co-Chair of the
Global Battery Alliance. “Supplying ethically produced cobalt
hydroxide to Electra meets our values and supports North America’s
cobalt demand, as well as the region’s rapidly expanding battery
supply chain.”
ERG’s cobalt hydroxide is an intermediate product from mining
operations and is the preferred feedstock for refining a battery
grade cobalt sulfate product.
The DRC represents approximately 75% of global cobalt production
and approximately 90% of this cobalt is destined for EV batteries.
Most of this material is being refined in China, which controls
roughly 80% of the cobalt chemicals market. ERG’s cobalt has a low
carbon footprint as it is produced from historic tailings and the
electrical grid used across their facilities is primarily
hydroelectric. ERG is a founding member of the Global Battery
Alliance and the Metalkol facility is assured under the Responsible
Minerals Assurance Process (RMAP), which was established to provide
assurance to manufacturers that critical minerals were sourced from
a responsible and ethical supply chain.
Electra previously announced a five-year offtake agreement with
LG Energy Solution for up to 80% of production, and demand for the
remaining production far exceeds production capacity. Electra and
ERG are exploring further collaboration to de-risk the construction
of another cobalt refinery in the Bécancour, Quebec district.
Electra’s refinery complex, when completed, aims to be the first
in North America to integrate the production of critical minerals,
including cobalt sulfate and nickel sulfate, needed for the North
American electric vehicle battery supply chain, and the processing
of black mass material, designed to recover high value elements
found in recycled lithium-ion batteries, including lithium, nickel,
cobalt, manganese, graphite, and copper. Throughout 2023, Electra
operated a plant scale battery recycling trial at its refinery
complex, processing more than 40 tonnes of black mass material and
producing high-quality nickel, cobalt and lithium products.
Once fully commissioned, the refinery could produce sufficient
cobalt for up to 1.5 million electric vehicles annually.
Electra’s low carbon hydrometallurgical refinery in Canada is
permitted and has a current replacement value of approximately
US$200 million. The Company requires an additional US$60 million in
order to complete construction. The cobalt project has been
derisked through the delivery of most long lead equipment and by
commissioning the legacy refinery operations for the black mass
demonstration plant.
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 and a black mass refinery, Electra is
executing a multipronged strategy to onshore the electric vehicle
supply chain. Keys to its strategy are integrating black mass
recycling and nickel sulfate production at Electra’s cobalt
refinery located north of Toronto, advancing Iron Creek, its
cobalt-copper exploration-stage project in the Idaho Cobalt Belt,
and expanding cobalt sulfate processing into Bécancour, Quebec. For
more information, please visit www.ElectraBMC.com.
About Eurasian Resources Group
Eurasian Resources Group (ERG) is a leading diversified natural
resources group headquartered in Luxembourg with integrated mining,
processing, energy, logistics, and marketing operations. The Group
operates in almost 20 countries and is a major employer in the
industry with over 80,000 employees and contractors.
ERG is one of the world’s largest producers of cobalt and
ferrochrome. It is also a large global supplier of copper and
high-grade iron ore. In Eurasia, it is one of the major suppliers
of alumina and is Kazakhstan’s only producer of high-grade
aluminium.
In Africa, ERG mines and processes copper and cobalt ore and
produces copper metal and cobalt hydroxide. Frontier is the
cornerstone of the Group’s copper business, and ERG’s Metalkol, a
major tailings reprocessing operation in the Democratic Republic of
the Congo, has become one of the world’s largest producers of
cobalt as well as a major producer of copper. The Group has its own
supply chain on the continent through its logistics company Sabot
as well as development projects which are focused on other minerals
and products across the African continent, including South Africa
and Zimbabwe.
ERG is a founding member of the Global Battery Alliance (GBA),
hosted originally on the platform of the World Economic Forum. The
GBA is dedicated to ensuring an ethical and sustainable global
supply chain for the lithium-ion batteries that can power the
Fourth Industrial Revolution and a low carbon economy through
electric vehicles, renewable energy technologies and smartphones.
Since its establishment in 2017, the GBA has grown to include more
than 150 leading businesses and international organisations as
members, becoming the world’s largest multi-stakeholder consortium
in the energy storage space. In 2023, GBA has launched the world’s
first Battery Passport.
ERG champions the WEF Securing Minerals for the Energy
Transition (SMET) initiative, which aims to secure a reliable
supply of the critical minerals vital for decarbonisation.
The Group has also become one of the first 25 organisations
globally to support the @Sustainable Markets Initiative’s ‘Terra
Carta’, launched by King Charles III (while he was Prince of
Wales), which provides a roadmap for a sustainable future by
2030.
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 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.sedar.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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240402063227/en/
Heather Smiles Vice President, Investor Relations &
Corporate Development Electra Battery Materials Info@ElectraBMC.com
1.416.900.3891
Andrey Belov Group Senior Manager – PR and Communications
Eurasian Resources Group, Luxembourg press@erg.net
www.eurasianresources.lu
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