Cash-strapped cobalt refinery in northern Ont. hopes to relaunch in the spring
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It's been a bumpy ride for Northern Ontario's Electra Battery Materials, a company set to become the only cobalt refinery in North America.
A difficult financial situation forced a slowdown at the Temiskaming Shores plant recently, with construction coming to a grinding halt in 2023.
Last year the company received $20-million from the U.S. Department of Defense as part of a national security initiative aiming to secure critical mineral supply chains.
Still, more investors are needed to finish building the facility. CEO Trent Mell is tentatively optimistic that the funding could come together in the next few weeks despite geopolitical shifts like the U.S.-Canada trade war.
"We've got a strategic partner willing to put in $20-million," said CEO Trent Mell. "We don't need much, we're talking $80-million and this thing's in production."
Mell declined to say if the funding package will involve some U.S.-based investors.
He said his company was receiving a lot of government support from Ontario and Canada. "We have a lot of allies that want to see us succeed."
Export ban on raw cobalt won't be an issue: CEO
Once completed, Electra Battery Materials' refinery is set to process raw cobalt from the Democratic Republic of the Congo (DRC).
That country recently imposed a four-month export ban on the material, but Mell doesn't think that will hurt his company.
"We've seen this before in the DRC. It's the largest producer of mined cobalt in the world. It's a way for them to manage prices and royalties… it usually gets resolved fairly quickly," he said.
Prices for cobalt have been increasing steadily since the DRC imposed its export ban.
"That's great for our Western supply chain trying to build in a stronger commodity price environment," said Mell.
If the refinery re-opens in the spring as planned, that will mean about 150 new jobs in northern Ontario.
"That's a lot of contractors, from Sudbury to North Bay to Temiskaming Shores," said Mell. "It'll be a regional push."
Dozens were let go in the fall of 2023 when construction slowed down at the plant.
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