Electra Pursues Ambitious Battery Materials Growth Strategy

• Electra Battery Materials (ELBM) is undergoing European expansion.
• ELBM's cobalt plant is under construction and progressing towards commissioning and cash flow.
• The company is hiring key personnel to strengthen its team, including a Vice President for growth and sustainability.
• ELBM emphasizes sustainability and transparency in its initiatives, aiming to certify its supply chain and address carbon footprint concerns.
• Glencore has signed a contract for 1,000 tons of cobalt sulfate out of ELBM's total 5,000 tons production, supporting ELBM's market presence and sustainability efforts.

About Electra Battery Materials

Electra Battery Materials Corporation (Electra) is a Canadian battery materials company focused on becoming a fully integrated supplier of battery materials for the North American electric vehicle supply chain. The company is executing an ambitious growth strategy to establish a domestic battery materials park.

Interview with President & CEO, Trent Mell

Cobalt Refining Plant On Track for 2023 Commissioning

Electra’s primary focus is currently on commissioning its cobalt sulfate refining plant in Ontario by the end of 2023. The 5,000 tonne per annum facility will refine cobalt material supplied by Glencore into a battery-grade cobalt sulfate product. Electra has already secured an offtake agreement with Glencore for 1,000 tonnes per annum of the plant’s capacity.

Discussions are underway with potential customers to contract the remaining 4,000 tonnes of capacity. Securing these contracts will be an important catalyst for Electra, providing cash flow and validating the company’s production process.

On-the-ground construction activities are ramping up through the spring to support the targeted commissioning timeline. This includes civil works, concrete pouring and installation of key equipment like the crystallizer. The company expects to provide updates over the coming months as construction milestones are achieved.

Integrated Battery Materials Strategy Takes Shape

While commissioning the cobalt plant remains the top priority, Electra is actively developing the downstream phases of its strategy to establish North America’s first integrated battery materials park. This includes facilities for battery recycling, nickel refining and precursor cathode active material (PCAM) production.

Electra is taking a modular approach to de-risk expansion plans, starting with a 4,000 tonne demonstration plant for recycling of lithium-ion batteries. The demonstration plant will provide valuable operating experience and support larger scale commercial recycling facilities integrated with Electra’s refining operations.

Conversations are already underway with potential partners for PCAM production. Integrating precursor production with Electra’s refining operations provides benefits related to permitting and utilizing recycled materials. Landing a strategic partner for PCAM production would be a major catalyst by securing a domestic customer for Electra’s refined metals.

Strong Leadership Team Positioned for Growth

To support its ambitious growth strategy, Electra continues to build out its leadership team. This includes recruitment of a VP Sustainability to support ESG initiatives and certification of the company’s sustainable cobalt supply chain. Steps like this will allow Electra to target premium pricing for its responsibly sourced materials.

The company is well-funded having recently completed a $70 million equity raise. This provides a strong cash position to support ongoing construction and expansion plans. Electra is also considering additional facilities in Europe to replicate its Canadian success, highlighting the potential scalability of its business model.

Risks & Opportunities

Risks

• Construction delays or cost overruns on the cobalt refining plant could impact timeline to first cash flow.
• Securing offtake agreements for full cobalt refining capacity may take longer than expected.
• Expansion into battery recycling, nickel refining and PCAM production carries execution risk and may require additional capital.

Opportunities

• First mover advantage in North America's EV battery supply chain as demand rapidly scales up.
• Potential to secure premium pricing for responsibly sourced battery materials.
• Modular approach to expansion could lead to faster growth supported by strategic partners.
• Strong leadership team with chemical processing expertise to drive strategy.
• Additional facilities in Europe could provide geographic diversification.
• Long-term leverage to meteoric growth projected in EV adoption and battery materials demand.

Conclusion

With electric vehicle adoption accelerating, there is tremendous opportunity for companies supporting the battery supply chain. Electra is positioned to be a leader in this space as one of the only fully integrated battery materials companies in North America.

The cobalt refining plant will start generating cash flow next year just as demand for responsibly sourced materials ramps up. Electra’s step-wise expansion strategy minimizes risk while allowing the company to capitalize on growing battery materials demand.

For investors interested in the electric vehicle revolution, Electra provides a unique opportunity to invest in a company with leverage to the full battery supply chain. As construction progresses and expansion plans advance in 2023, the company’s ambitious vision for an integrated battery materials park in Canada will start to become a reality.