January 20, 2022
Electra Battery Materials Corp. (TSXV:ELBM, BUY, C$0.80 target, David A. Talbot) has signed a memorandum of understanding (MOU) for cobalt sulfate supply with Japanese conglomerate, Marubeni Corp. The MOU encompasses sourcing of black mass and other material derived from recycled lithium-ion batteries for Electra’s Cobalt Refinery in Ontario. Marubeni’s wide network of battery recyclers in Asia and elsewhere will assist in the sourcing of lithium-ion battery material. Per the terms of the MOU, Marubeni will also help Electra market a portion of its cobalt production into existing lithium-ion battery supply chains in Japan that are already serving the North American market, laying the groundwork for further expansion opportunities as the market develops. The company remains on track to commission its near-zero carbon Cobalt Refinery in late 2022, positioning Electra as the only producer of battery grade cobalt in North America. The refinery is the first of a four-phased project that will result in North America’s only integrated battery materials park, refining cobalt, nickel and black mass and converting the material into cathode precursor material for lithium-ion batteries. Electra is currently expanding its permitted Canadian refinery to produce 6,500tpa (up from 5,000tpa; read more) of Co contained in a battery-grade Co sulfate beginning in Q4/22. Read more
