Electra Battery Materials Greenlights US$73M Refinery Budget, Secures 60% Supply Deal
Electra Battery Materials approved a US$73 million budget for its Ontario cobalt sulfate refinery, targeting commissioning in Q4 2026 and commercial production in Q4 2027. The company secured a six-year deal for about 60% of output with LG Energy Solution, raised US$4.6 million via a US$25 million ATM program and obtained C$20 million in government funding.
1. Q1 Milestones and Budget Approval
In Q1 2026, Electra Battery Materials completed its early works program at the Ontario cobalt sulfate refinery and secured Board approval for a US$73 million construction budget. The plan sets commissioning for Q4 2026, mechanical completion in Q2 2027 and commercial production in Q4 2027.
2. Construction Contracts and Execution
Electra awarded approximately C$32 million in refinery construction contracts, including a US$6.1 million agreement with EXP Services Inc. and a C$25 million package for solvent extraction infrastructure. Civil, structural, concrete and piping work are underway to connect major process buildings and advance full-scale construction.
3. Strategic Supply Agreement
The company entered a firm six-year supply deal with LG Energy Solution covering roughly 60% of planned cobalt sulfate output. This commitment underpins future North American battery production and strengthens Electra’s position in the lithium-ion battery supply chain.
4. Funding and Liquidity Position
Electra boosted its ATM equity program to US$25 million and raised US$4.6 million at US$0.91 per share during the quarter. It also secured C$20 million from the Government of Canada under the Strategic Response Fund, combining non-repayable and repayable contributions, and ended Q1 with C$40.2 million in cash and equivalents.