Impact: Slightly Positive
Electra Battery Materials provided an update on its battery materials recycling trial, confirming improved recoveries of high-value elements, higher metal content in saleable products produced, and reduced use of reagents. Following the successful nine-month trial, Electra will continue to process black mass material at its refinery complex. A desktop scoping study evaluating the economics of a 2,500 tpa modular black mass processing facility estimated an IRR of 127% with a payback period of 2 years, and management is prioritizing this project in an environment of low Co prices (read note). A number of improvement projects are underway, including transitioning the batch demo plant to a continuous production operation and adding a Li product line to the Ni-Co MHP. Production is expected to begin ramping up in Q3/23 and reach an annualised rate of 2,500 tpa in 2024 (read notable). Recycling black mass will increasingly become a key feature of the EV battery supply chain given the strong demand for critical minerals and the looming supply deficit of metals such as nickel and cobalt. According to data from McKinsey & Company, available battery material for recycling is expected to grow by 20% per year through 2040.
