Electra Battery Materials Plans Nickel Sulfate Refinery to Strengthen North American Supply Chains

Electra Battery Materials Corporation, a leader in North American critical minerals processing, has announced preliminary engineering results for a proposed two-phase nickel refinery. The company aims to strengthen North American supply chains by providing nickel for industrial, military, and battery applications, reducing reliance on foreign processing.

The initial phase of the refinery, which is expected to convert mine-derived feedstock into battery-grade nickel sulfate, is projected to produce approximately 20,000 tonnes of contained nickel per year. According to preliminary process modeling, nickel and cobalt recoveries are estimated to be 97% or higher, with the potential for recovered cobalt hydroxide to serve as a feedstock for Electra’s cobalt refinery.

Trent Mell, CEO of Electra, stated, "We need the capacity to refine nickel for various applications, including industrial, military, and battery needs. Electra is leveraging our expertise in cobalt refining and battery recycling to advance a new source of nickel sulfate and nickel metal. Our goal is to bolster critical mineral supply chains in the United States and Canada and reduce our dependence on Chinese processing."

The proposed facility would address a gap in North America's capacity to convert nickel feedstock into products for domestic customers. It is designed to process intermediates that might otherwise be refined in China, thereby reducing geopolitical risk and enhancing the security and traceability of Western critical minerals supply chains.

Electra is currently advancing the financing and commercial strategy for this project in parallel with engineering. The company is engaging with governments on funding programs and with upstream and downstream partners on feedstock supply and offtake arrangements. These discussions are intended to align government support and private financing with the supply and customer commitments needed to develop competitive critical minerals processing capacity.

The project is expected to use conventional hydrometallurgical processes to refine feedstock from existing mining operations. This approach would utilize available feedstock while creating a processing option for future domestic mine supply. Preliminary capital estimates for the first-phase nickel sulfate refinery range from approximately US$530 million to US$675 million, based on an annual production of approximately 20,000 tonnes of contained nickel.

A second phase could expand the facility to process battery black mass, potentially adding an additional 20,000 tonnes per year of contained nickel capacity, along with cobalt, lithium, and graphite byproducts. This expansion would build on Electra’s black mass demonstration work to recover critical minerals using hydrometallurgical processes. Recent U.S. restrictions on black mass exports underscore the need to limit critical minerals exports to support investment in domestic processing capacity.

Work completed to date includes preliminary process design, equipment sizing, site layout, infrastructure and logistics assessment, and capital and operating cost estimates. Further engineering is planned for nickel metal production to confirm product specifications, process scope, and capital requirements.

The study uses a preferred location in the southeastern United States as its site basis. Final site selection remains subject to further assessment, as well as commercial and funding arrangements. Electra will continue to consider alternative locations in North America as it evaluates access to feedstock and customers, utilities, permitting requirements, and the ability to accommodate the second-phase recycling expansion.

Doe, the chief executive, added, "Our focus is on securing the feedstock, customer commitments, and financing needed to support a development decision. We are working with governments and potential commercial partners to establish the conditions for a competitive North American nickel refinery serving industrial, military, and battery customers."

Electra’s immediate priority remains the completion and commissioning of its Ontario cobalt sulfate refinery. The proposed nickel refinery and recycling expansion remain longer-term opportunities.