Electra Enhances Terms of Cobalt Supply Agreement with LG Energy Solution
July 24 2023 - 7:00AM
Business Wire
Agreement extended to 5 years and supply
increased to 19K tonnes
Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V:
ELBM) (“Electra”) today announced that its battery grade cobalt
supply agreement with LG Energy Solution (LGES; KRX:
373220), a leading global manufacturer of lithium-ion
batteries, has been extended and expanded from terms initially
announced in September 2022. Electra will now supply LG Energy
Solution with 19,000 tonnes of battery grade cobalt over a
five-year period beginning in 2025. The material will be supplied
from the only cobalt sulfate refinery in North America, located
north of Toronto, Ontario.
Under the updated terms, Electra will supply LG Energy Solution
with 3,000 tonnes of cobalt contained in a cobalt sulfate product
in 2025 and a further 4,000 tonnes in each of the following years
through 2029 for a total of 19,000 tonnes under an agreed pricing
mechanism. Previously, Electra had agreed to supply LGES with 7,000
tonnes of contained cobalt in a cobalt sulfate product over a
three-year period, starting this year.
“LG Energy Solution continues to strengthen its position as a
global leader in the electric vehicle supply chain through its
investments in Ontario and active collaboration with Canadian
companies developing critical minerals and battery materials,” said
Trent Mell, CEO of Electra.
Consistent with the original terms of the supply agreement,
Electra and LG Energy Solution will also cooperate and explore ways
to advance opportunities across North America’s EV supply chain,
including, but not limited to, securing of sustainable sources of
raw materials. Financial terms of the supply agreement were not
disclosed.
According to research by CRU, a leading provider of business
intelligence on the global metals, mining, and fertilizer
industries, China is currently responsible for 71% of refined
cobalt, 76% of refined nickel and 93% of refined manganese used in
EV batteries. Favourable public policy and growing EV adoption
rates are accelerating the development of a North American refining
and battery recycling ecosystem by Electra. The U.S. Inflation
Reduction Act underscores the importance of creating a domestic EV
battery supply chain by extending a $7,500 tax credit for vehicles
that do not contain critical minerals sourced from China and
Russia.
Electra’s low-carbon hydrometallurgical refinery complex is
located in Temiskaming Shores, near the Sudbury Nickel Basin. The
refinery is currently under construction and also running a
plant-scale black mass recycling trial to recover high-value
elements contained in expired lithium-ion batteries, including
lithium, nickel, cobalt, manganese and graphite. To date, Electra’s
results from its plant-scale trial have met or exceeded results
achieved previously in a lab setting. Electra anticipates
commercialization of its black mass recycling capabilities in 2024
pending completion of funding commitments.
At full capacity, Electra’s battery materials park could produce
enough cobalt sulfate to supply up to 1.5 million electric vehicles
per year and process 2,500 tonnes of black mass materials per
annum.
The Company’s cobalt refinery remains under construction and
additional capital is being sought from government, strategic and
other sources in order to complete construction and final
commissioning. The current brokered private placement being
completed by the Company along with the strategic investment by
Three Fires is intended to help prioritize the Company’s plans for
a 2,500 tonne battery black mass refining operation.
About Electra Battery Materials
Electra is a processor of low-carbon, ethically-sourced battery
materials. Currently commissioning North America’s only cobalt
sulfate refinery, Electra is executing a multipronged strategy
focused on onshoring the electric vehicle supply chain. Keys to its
strategy are integrating black mass recycling and nickel sulfate
production at Electra’s 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 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”. Forward-looking statements 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. 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.sedar.com. Although Electra
Battery Materials Corporation 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, Electra Battery Materials Corporation 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/20230724308738/en/
Joe Racanelli Vice President, Investor Relations
info@ElectraBMC.com 1.416.900.3891
Electra Battery Materials (NASDAQ:ELBM)
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