Electra Awarded $20 Million from U.S. Department of Defense Under the Defense Production Act
19 Agosto 2024 - 3:34PM
Business Wire
(All amounts in US dollars unless otherwise
stated)
Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V:
ELBM) (“Electra” or the “Company”), a processor of low-carbon,
ethically-sourced battery materials, announced today that it has
been awarded $20 million by the U.S. Department of Defense. The
award was made pursuant to Title III of the Defense Production Act
(DPA) to expand domestic production capability and is funded
through the Additional Ukraine Supplemental Appropriations Act.
The funds will support the construction and commissioning of
North America’s only cobalt sulfate refinery, capable of producing
battery grade materials for lithium-ion batteries. Today, more than
80% of battery grade cobalt is produced in China.
“Electra is committed to strengthening the resiliency of the
North American battery supply chain,” said Electra CEO, Trent Mell.
“We are grateful to the U.S. Department of Defense for its support.
On issues of national security, there are no borders between Canada
and the United States. We are proud to partner with the U.S.
Government to build a strong North American supply chain for
critical minerals.”
The $250 million refinery project is located north of Toronto,
in Temiskaming Shores, and is projected to have the lowest carbon
footprint in the world. The Company is expanding an existing plant,
with permits in hand, construction well underway and most long lead
custom equipment at site.
Once fully commissioned, the facility can produce 6,500 tonnes
of cobalt per year, which would support the production of over 1
million EVs annually. LG Energy Solution will purchase up to 80% of
capacity over the first five years and several buyers are now
competing for the remaining production. The cobalt feed material
will be ethically-sourced from Glencore and Eurasian Resources
Group mines in the DRC – material that would otherwise be shipped
to China.
In addition to cobalt refining, Electra plans to produce other
battery materials that will strengthen the resiliency of the North
American supply chain. In 2023, the Company operated a plant-scale
black mass demonstration plant at its refinery complex, recovering
lithium, nickel, cobalt and other critical minerals from batteries.
The company is also contemplating a second cobalt sulfate facility
in Bécancour, Quebec and a strategically located North American
nickel sulfate plant.
Title III of the DPA is committed to ensuring resilient, robust
domestic supply chains in order to reduce reliance on foreign
manufacturing and correct domestic shortfalls in the defense
industrial base. To qualify for funding opportunities under DPA
Title III, proposed projects must meet the following criteria:
- The industrial resource, material, or critical technology item
is essential to the national defense;
- Without Presidential action under 50 U.S. Code §4533, United
States industry cannot reasonably be expected to provide the
capability for the needed industrial resource, material, or
critical technology item in a timely manner; and
- Purchases, purchase commitments, or other action pursuant to 50
U.S. Code §4533 are the most cost effective, expedient, and
practical alternative method for meeting the need.
Canada is one of the United States’ closest allies that is
eligible for DPA Title III funding, indicating the strong need to
secure the global industrial base.
About Electra Battery Materials
Electra is a processor of low-carbon, ethically sourced battery
materials. Currently focused on developing North America’s only
cobalt sulfate refinery and a black mass refinery, Electra is
executing a multipronged strategy to onshore the electric vehicle
supply chain. Keys to its strategy are integrating black mass
recycling and nickel refining with Electra’s cobalt refinery
located north of Toronto, advancing Iron Creek, its cobalt-copper
exploration-stage project in the Idaho Cobalt Belt, and expanding
cobalt sulfate processing into Bécancour, Quebec. For more
information, please visit www.ElectraBMC.com.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Cautionary Note Regarding Forward-Looking Statements
This news release may contain forward-looking statements and
forward-looking information (together, “forward-looking
statements”) within the meaning of applicable securities laws and
the United States Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical facts, are
forward-looking statements. Generally, forward-looking statements
can be identified by the use of terminology such as “plans”,
“expects”, “estimates”, “intends”, “anticipates”, “believes” or
variations of such words, or statements that certain actions,
events or results “may”, “could”, “would”, “might”, “occur” or “be
achieved”. Such forward-looking statements include, without
limitation, statements regarding funding under the DPA Technology
Investment Agreement. Forward-looking statements are based on
certain assumptions, and involve risks, uncertainties and other
factors that could cause actual results, performance, and
opportunities to differ materially from those implied by such
forward-looking statements. Among the bases for assumptions with
respect to the potential for additional government funding are
discussions and indications of support from government actors based
on certain milestones being achieved. Factors that could cause
actual results to differ materially from these forward-looking
statements are set forth in the management discussion and analysis
and other disclosures of risk factors for Electra Battery Materials
Corporation, filed on SEDAR+ at www.sedarplus.com and with on EDGAR
at www.sec.gov. Other factors that could cause actual results to
differ materially include changes with respect to government or
investor expectations or actions as compared to communicated
intentions, and general macroeconomic and other trends that can
affect levels of government or private investment. Although the
Company believes that the information and assumptions used in
preparing the forward-looking statements are reasonable, undue
reliance should not be placed on these statements, which only apply
as of the date of this news release, and no assurance can be given
that such events will occur in the disclosed times frames or at
all. Except where required by applicable law, the Company disclaims
any intention or obligation to update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20240819093279/en/
Heather Smiles Vice President, Investor Relations &
Corporate Development Electra Battery Materials info@ElectraBMC.com
1.416.900.3891
Electra Battery Materials (NASDAQ:ELBM)
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