Electra has funding needed to complete cobalt sulfate refinery

Lithium-ion battery recycler Electra Battery Materials Corp., Toronto, has closed its $34.5 million financing and $40 million debt equitization, marking a significant change to its balance sheet and funding outlook.

With more than $80 million now secured from investors and government commitments, the company has obtained all the capital required to complete construction and commissioning of what it claims will be North America’s first cobalt sulfate refinery. The company aims to strengthen the region’s battery and defense supply chains.

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With the successful closing of these transactions and previously announced government commitments, the construction and commissioning of Electra's cobalt sulfate plant in Temiskaming Shores, Ontario, are fully funded. As a fully permitted and construction-ready project, the company says the plant will play a critical role in reshoring cobalt processing—a capability the U.S. and Canadian governments have identified as essential to national security and industrial resilience.

According to Electra, the $40 million debt equitization reduces its total debt from $67 million to $27 million, simplifying the company’s capital structure. Electra also notes “significant insider participation,” including directors and management, “bolstering strategic alignment with shareholders.”

Electra CEO Trent Mell says the funding allows the company to enter the execution phase of building the refinery.

“This marks a turning point for Electra and a critical step in reducing foreign dependence in the battery supply chain,” Mell says. “The coming together of our lenders, shareholders and three levels of government underscores the strategic importance of this asset.”

He adds that, currently, more than 90 percent of global cobalt sulfate production comes from China.

“Establishing a resilient, transparent and domestically controlled supply chain is essential for our most critical industries, including automotive, defense, energy and infrastructure. Electra is proud to be part of the solution to strengthen North American supply security.”

Marty Rendall, Electra’s chief financial officer, says the financing and debt restructuring significantly derisks the company’s path forward.

“A simplified capital structure and stronger financial position give us greater flexibility to advance construction and prepare for commissioning," Rendall says. Institutional demand for this offering highlights the growing conviction in the critical minerals sector and in Electra’s leadership within it.”

Electra expects the refinery to produce up to 6,500 tons of cobalt sulfate per year once operational—enough to support production of batteries for approximately 1 million vehicles, or to supply sectors such as national defense, energy storage and grid infrastructure.

The company says it will continue to advance its portfolio of projects during the construction phase, adding that those projects are aligned with long-term demand growth and domestic sourcing priorities. The pipeline includes expanding the potential of the company’s Idaho cobalt project, Iron Creek, which Electra considers a possible future source of U.S.-sourced feedstock; advancing its black mass recycling program to recover critical minerals from production scrap; and evaluating opportunities for nickel sulfate refining capacity in North America to meet projected cathode material bottlenecks.

“Together, these initiatives position Electra as a key contributor to North America’s secure and sustainable critical minerals supply chain, supporting the production of low-carbon, ethically sourced materials essential to national defense, grid infrastructure and industrial resilience,” the company says.