Electra Battery Supplies Corp.’s new cobalt refinery in Northern Ontario won’t open till spring, however after inking a provide settlement with the world’s second-largest battery cell producer this fall, the upstart mineral processor is already eying growth.
Firm CEO Trent Mell mentioned the cobalt sulfate provide take care of South Korea-based LG Power Resolution (LGES) signed Sept. 22 will account for about 60 per cent of its refinery’s output throughout its first three years in operation, and that demand from different gamers all through the electrical car battery provide chain is extraordinarily robust.
“Honestly, we might promote all of it tomorrow,” he informed Automotive Information Canada of the plant’s remaining output.
Mell mentioned he expects the corporate can have one other provide deal to reveal earlier than the top of 2022 after which, “we’re mainly taking orders on future growth.”
Building on Electra’s cobalt sulfate refinery in Temiskaming Shores, Ont., about 500 kilometres north of Toronto, was initially scheduled to wrap up earlier than the top of the 12 months, however provide chain points that affected “vital tools” pressured the corporate to delay commissioning the plant. The corporate additionally boosted its value estimate for the challenge to between US$76 million and $80 million, up from $67 million initially.
Mell doesn’t count on any additional delays to getting what will probably be North America’s solely cobalt refinery up and operating.
“I believe we’ve obtained a deal with on it. We’ve pushed out our commissioning till spring, however we really feel fairly good with the group and the long-lead visibility that we have now that we’ll hit that.”
As automakers pile into the EV market and shopper demand picks up, Electra is trying to scale up its cobalt sulfate capability accordingly. Mell mentioned the corporate’s new refinery will produce sufficient cobalt for about 1.5 million EV batteries per 12 months. However North American demand will rapidly outstrip this determine, he added.
“We wish to backfill on that, so as to add to the capability at our present plant in Ontario.”
A SECOND COBALT REFINERY?
Electra can be a second cobalt refinery in Bécancour, Que.
Basic Motors, Posco Chemical and BASF are already constructing battery supplies operations within the fast-evolving hub halfway between Montreal and Quebec Metropolis, and the proximity to potential clients would offer the chance to construct an built-in plant, Mell mentioned. Electra is engaged on a pre-feasibility examine right into a refinery within the metropolis, in addition to doing preliminary work on the plant’s engineering.
“There’s each purpose to imagine {that a} large, large portion of our capital goes to be funded via provincial and federal assist, and so that actually does decrease the hurdle charge for us to make a go of it. And to the extent we’re capable of take orders immediately on future deliveries from that plant, that’ll bolster it as effectively.”