Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V:
ELBM) (“Electra” or the “Company”) announces that
it has received a commitment for a strategic investment from the
Three Fires Group Inc. (“Three Fires”) in support of
advancing the Company’s battery materials park north of Toronto and
accelerating its battery recycling strategy in North America. The
Three Fires investment is expected to form part of a larger
financing by Electra totaling up to $20 million. All amounts are in
Canadian currency unless noted.
“Since announcing plans to form a battery recycling joint
venture, we have had active discussions with Three Fires on how to
best leverage our respective expertise and experiences to
capitalize on the growing lithium-ion battery recycling market,”
said Trent Mell, Electra’s CEO. “Following a successful black mass
recycling trial at our battery materials park in Temiskaming
Shores, the strategic investment by Three Fires will help us to
prioritize our focus and accelerate development of a permanent
2,500 tonne per annum recycling refinery, resulting in near-term
cash flow at a low capital intensity while we continue to advance
the cobalt sulfate refinery.”
Mr. Mell added, “We see this strategic relationship as an
opportunity to position Electra as a platform for greater
participation by First Nations in the transition to a low-carbon
economy, particularly relating to lithium-ion battery recycling.
This would include participation at the board level and all levels
of the organization, ensuring that Electra’s business strategy and
ESG practices are aligned with the values and priorities of
Canada’s First Nations.”
"We are excited for this opportunity as a strategic path forward
in allaying our shareholder First Nation’s concerns around the
rapidly growing EV battery manufacturing sector in southwestern
Ontario,” said Phil Lee, CEO of Three Fires. "The region has
announced billions of dollars of government and corporate
investments in the past 10 months, but no announcements yet on how
the critical end of life cycle portion of the value chain will be
treated."
Mr. Lee added, “What we desperately need is a clear plan to
recycle the estimated 30 tonnes per day of EV battery manufacturing
waste that is expected to be generated on our traditional lands.
The Ministry of the Environment, Conservation and Parks estimates
that all existing landfill capacity in the province will be
exhausted in the next nine to 12 years. We are confident that our
joint venture with Electra will provide a turn-key solution that is
mutually beneficial for Canada, the Province of Ontario, First
Nations, and industry partners such as VW and LG-Stellantis. Our
solution, which would cost approximately US$30 million to develop,
includes the building of a primary recycling facility located in
southern Ontario that will shred lithium-ion batteries, process
battery scrap, and provide a steady supply of black mass to be
refined by Electra at its refinery.”
The quantum and terms of Three Fires’ strategic investment is
expected to be confirmed following review and approval from its
shareholder First Nation and funding sources, and consultations
with the federal and provincial governments.
It is expected that the investment will be facilitated by way of
a non-brokered private placement (the “Placement”) of units
(each, a “Unit”) of Electra at a price of $1.10 per
Unit. Each Unit will consist of one common share of Electra issued
at a price of $1.10 per share and one common share purchase
warrant which may be exercised at a price of $1.74 per
warrant over a 24-month period. Under the terms of the proposed
strategic investment, Three Fires would purchase Units and Electra
will grant Three Fires the right to nominate up to two members of
Electra’s board of directors upon closing, and the right to
participate in future equity offerings, including to maintain its
pro rata percentage ownership in the Company.
Completion of the strategic investment is also subject to
Electra securing additional financing of not less than $10 million.
Electra and Three Fires are currently in discussions with various
government and third-party stakeholders to secure at least $10
million of additional financing to advance Electra’s refinery
project and battery recycling operations. In the event Electra
satisfies this condition with the issuance of additional Units,
Electra could issue up to a maximum of 17,241,379 Units in the
Placement. Completion of the Placement remains subject to the
approval of the TSX Venture Exchange, and Electra will provide
further details regarding the Placement as soon as available.
Electra and Three Fires had previously announced plans to form a
joint venture focused on the recycling of lithium-ion battery waste
in Ontario supported by Electra’s propriety black mass processing
capabilities that recover high value elements.
Under the joint venture, Electra and Three Fires will
collaborate to source and process lithium-ion battery waste
generated by manufacturers of current and future battery cells,
electric vehicles, and energy storage systems. The waste will be
processed at a primary recycling facility to be located in southern
Ontario to produce black mass material that will be further refined
using Electra’s proprietary hydrometallurgical process at its
refinery complex north of Toronto to recover high value elements,
including lithium, nickel, cobalt, copper, manganese, and graphite.
In addition to the black mass, the primary recycling facility will
recover aluminum, copper and plastics, which will also be
recycled.
Electra previously released highlights of an internal desktop
study that evaluated the potential economics of developing a
standalone black mass process plant within its refinery complex
capable of processing 2,500 tonnes of black mass material per
annum. The Phase 1 facility could be scaled over time as the market
for battery recycling expands. Additional details of Electra’s
scoping study can be found in the Company’s news release issued on
May 11, 2023.
The Company’s refinery complex is located in northern Ontario,
where the electricity grid mostly runs on renewable energy sources,
making Electra a low carbon emitter. Combined with its
hydrometallurgical process, Electra’s recycling plant is estimated
to be five times less carbon intensive than a comparable plant
using a pyrometallurgical process in a jurisdiction with an
electricity grid similar to China’s. Moreover, Electra's process
generates less waste and enables the recovery of lithium and other
by-products that pyrometallurgical processes cannot recover.
Several electric vehicle facilities are moving forward across
the treaty areas of the Three Fires Confederacy in southwestern
Ontario, including recent announcements by the Volkswagen Group,
LG-Stellantis, Toyota and GM CAMI. In parallel, southwestern
Ontario is seeing dozens of proposals for transmission grid
connected battery energy storage systems. Research firm
MarketsandMarkets estimates the lithium-ion battery recycling
market to grow to $35.1 billion by 2031, from $6.5 billion in
2022.
About the Three Fires Group The Three Fires Group is
focused on generating wealth and prosperity from economic and
infrastructure opportunities for current and future generations.
Through its Climate Action Investment Policy, the Three Fires Group
supports First Nation investments in non-fossil fuel, clean energy
projects generally aligned with the government of Ontario's energy
supply acquisition strategy, inclusive of "behind-the-meter"
generation and storage.
The Three Fires Group provided technical and investment
assistance for the recently announced Three Fires Nations-Ontario
Southwestern Ontario Infrastructure and Economic Opportunities
Table - a joint Crown-Indigenous effort to develop clean energy
infrastructure in Southern Ontario, including investments to build
Ontario's first large-scale electric vehicle battery manufacturing
plants, five new regional transmission lines, and a forthcoming
fleet of battery energy storage systems. For more information about
the Three Fires Group, please visit: www.threefires.com.
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”. Such forward-looking statements include, without
limitation, statements regarding the potential for additional
funding from the Federal government of Canada and the government of
Ontario and the quantum and terms thereof, the expected use of
proceeds of the Offering and the timing for receipt of any required
regulatory approvals. 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.sedar.com and with on EDGAR at
www.sec.gov. Other factors that could 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230626717168/en/
Joe Racanelli Vice President, Investor Relations
info@ElectraBMC.com 1.416.900.3891
Reggie George Executive Director, Special Projects and
Partnerships, Three Fires Group Reggie.george@threefires.com
1.226.349.5499
Electra Battery Materials (NASDAQ:ELBM)
Historical Stock Chart
From Apr 2024 to May 2024
Electra Battery Materials (NASDAQ:ELBM)
Historical Stock Chart
From May 2023 to May 2024