Toronto-based Electra Battery Materials has announced a 30% increase in the design capacity of its cobalt refinery, in Ontario, in response to client feedback and a strong demand outlook for battery-grade cobalt.
The company, which was formerly known as First Cobalt, will expand the capacity of the refinery’s crystalliser circuit to 6 500 t/y of cobalt production, compared with the feasibility study design of 5 000 t/y.
The budget for the larger circuit is $67-million, compared with the feasibility study estimate for a smaller plant of $60-million.
Electra Battery reports that construction remains on schedule to commission the refinery in the fourth quarter of next year. Initially, the refinery will ramp up to 5 000 t/y, but permit amendments will be sought for the incremental capacity to permit the facility to ramp up to 6 500 t/y.
“The strength of the North American electric vehicle market year-to-date and the growth forecasts of automakers informed our decision to invest in additional capacity even before the initial capacity has been brought on line,” president and CEO Trent Mell says.
Further, the company notes that it has formalised its previously announced long-term cobalt hydroxide feed arrangement with IXM, a fully owned subsidiary of CMOC, to supply cobalt from its Tenke Fungurme mining operation. This complements the existing cobalt hydroxide supply agreement the company has in place with Glencore.
Earlier this week, Electra Battery announced that it would pursue a more ambitious strategy of producing precursor material, nickel and cobalt, and to recycle batteries.