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Electra Battery Materials spotlights study showing compelling economics of Ontario integrated EV battery materials facility

Published: 08:48 08 Sep 2022 EDT

Electra Battery Materials Corporation - batteries showing energy stored inside
The company said its targeting the commercialization of an integrated nickel sulphate refinery and pCAM plant over the next three to four years

Electra Battery Materials Corporation (TSX-V:ELBM, NASDAQ:ELBM) has released highlights of a scoping study prepared by a global engineering firm supporting the creation of an integrated electric vehicle (EV) battery materials park in Ontario, Canada.

The scoping study examined the construction of a battery-grade nickel sulphate refinery in Ontario by 2025 to 2026 that would include nickel, cobalt and manganese refining, recycling of battery black mass materials, and precursor cathode active material (pCAM) manufacturing, the company said.

Capital costs to build an integrated facility producing 10,000 tonnes per annum of nickel sulphate and nickel equivalent pCAM materials, which could support domestic manufacturing of up to 250,000 fully electric vehicles per year, are anticipated to be between US$550 and $650 million.

READ: Electra Battery Materials files second quarter financial results, provides update on commissioning of its cobalt refinery

Operating costs to produce 10,000 tonnes per annum of nickel sulphate and nickel equivalent pCAM materials on an integrated basis are anticipated to be between US$125 and $133 million per year, Electra said.

According to the company, the integrated production facility is expected to contribute US$225 million of gross domestic product impact during the construction phase, plus an additional US$415 million during the first 10 years of operations.

"The scoping study supports our view that an integrated refining-recycling-pCAM battery materials complex in Ontario would deliver compelling economics, emit low carbon emissions and address the onshoring of battery materials needed by the North American automotive industry,” said Electra CEO Trent Mell.

With the scoping study completed, Electra is commencing a pre-feasibility study to assess a phased approach to nickel refining while lowering initial capital and operating cost estimates.

The company said it is targeting the commercialization of an integrated nickel sulphate refinery and pCAM plant over the next three to four years following the completion of requisite pre-feasibility and feasibility studies and project construction.

The facility is projected to have a 76,190 square-metre footprint that could be built on Electra's 600-acre land package in Temiskaming Shores, Ontario where the company is progressing with the commissioning of its cobalt sulphate refinery, Electra said.

Mell added: “With US electric vehicle manufacturers moving swiftly to reduce reliance on Chinese and Russian critical minerals in order to qualify for the $7,500 EV credit under the Inflation Reduction Act, Electra is capitalizing on the opportunity to provide secure domestic supply of EV battery materials.”  

Electra is a processor of low-carbon, ethically sourced battery materials.  

Contact the author at emily.jarvie@proactiveinvestors.com

Follow her on Twitter @emilyjjarvie

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