Electra restarts cobalt refinery construction, adds VP of projects and engineering

Battery recycler Electra Battery Materials Corp., Toronto, has resumed construction at its cobalt sulfate refinery in Temiskaming Shores, Ontario, following the arrangement of approximately $82 million in project financing.

The brownfield expansion allows Electra to complete what it claims is North America’s first cobalt sulfate refinery, with permits and infrastructure in place, major equipment already onsite and support from a fully funded capital program.

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‘We have been building toward this moment for several years,” Electra CEO Trent Mell says. “Today, government support, private investment and industrial policy are aligned to make completion of this refinery possible and to deliver a critical asset for North America. With the right team in place and a clear mandate, we are committed to driving this project through to completion. Once operational, this refinery will prove that midstream processing can be successfully onshored, creating a foundation for future growth.”

The company says it has engaged EXP to provide construction management support for the reactivation of construction. Work now is underway to advance site preparations, reinstate mechanical, electrical and instrumentation systems and maintain project momentum through the winter.

The workforce is expected to increase substantially once major mechanical, electrical and instrumentation contracts are awarded, Electra says, adding that it expects full-scale construction at the site to begin by early 2026.

“The company’s team is currently reviewing the construction schedule and capital estimates,” Electra says.

The previous 2023 re-baseline estimate of $60 million is being updated to reflect inflationary impacts and work already completed. The company intends to provide a further market update in January, providing greater visibility into final cost, an accelerated schedule and execution milestones.

Once commissioned, the company says the refinery will be capable of producing 6,500 tons of battery-grade cobalt sulfate per year. Its output will supply a critical input for lithium-ion battery manufacturing.

The construction and commissioning of the site is fully funded through a combination of equity financing and government support. Electra as received commitments totaling approximately $48 million in nondilutive funding from the U.S. Department of War, the Canadian government and Invest Ontario.

Electra notes it has an offtake agreement with global battery manufacturer LG Energy Solution. The refinery will process cobalt feedstock supplied by Glencore and Eurasian Resources Group, which Electra already has commercial agreements in place with. Test work also is underway on North American feedstocks, including cobalt from the Idaho Cobalt Belt, to assess their suitability for future processing.

Staff addition

To oversee the construction and commissioning of the refinery, Electra says it recently appointed Paolo Toscano as its vice president of projects and engineering, effective Oct. 29. Toscano has more than three decades of experience leading large-scale mining and metals projects across North America.

Electra says Toscano is an accomplished professional engineer, metallurgist and mining executive who has directed complex projects from feasibility through construction and operations. Prior to joining Electra, he served as senior vice president of project engineering and construction at Marathon Gold (now known as Equinox Gold), where he led a multidisciplinary team through construction and into operations at the Valentine Gold Project in Newfoundland and Labrador safely and efficiently.

Previously, Toscano also held senior roles at Alamos Gold, Ausenco Engineering, New Gold (Rainy River Resources) and SNC-Lavalin, where he advanced major gold and base metal projects through feasibility, design and construction. His experience includes leading process and metallurgical design for globally recognized projects such as the Eleonore Gold and Paracatu Plant expansions.

As Principal Consultant at Toscano Consulting, he has advised mining and engineering firms on project execution strategies, feasibility assessments and environmental and regulatory compliance.

“As Electra looks to accelerate construction of North America’s first cobalt sulfate refinery, we are focused on executing quickly, safely and with discipline,” Mell says. “Paolo brings exactly the kind of leadership this phase demands. His combination of technical depth, operational rigor and ability to unite teams around a common goal will drive the team to bring our refinery into production with the discipline and urgency needed. His track record of delivering complex projects on time and to the highest safety standards are aligned with Electra’s mission to strengthen North America’s critical minerals independence and build a more resilient domestic supply chain.”