https://www.northernontariobusiness.com/
Toronto developer still ‘bullish’ on the electric vehicle market as its battery recycling business picks up steam
Electra Battery Materials is facing a cash crunch to finish the expansion at its Temiskaming cobalt refinery complex.
Construction at the northeastern Ontario plant has stalled and the Toronto company announced May 11 that it has launched a strategic review process to snag a deep-pocketed partner. In the meantime, Electra said it is in cash conservation mode.
In a news release and a webcast last week on its 2023 first quarter results, Electra management said all options are on the table, which may include aligning with a strategic partner, selling all or a portion of their assets, or a merger opportunity. BMO Capital Markets is assisting in the process.
The price tag to finish the cobalt refinery is in the range of US$110 million to $121 million. Quite the hike from the original estimate of $62.7 million prior to the start of construction at the end of 2019. “We’re gonna need more capital,” said Electra CEO Trent Mell in the webcast.