Electra Battery Materials Corporation announced the successful completion of a US$34.5 million private placement alongside a US$40 million debt equitization, securing more than US$82 million in total funding for its wholly permitted cobalt sulfate refinery in Temiskaming Shores, Ontario. As North America’s first facility of its kind, the refinery is now fully funded for construction and commissioning and will play a pivotal role in reshoring cobalt processing for battery and defense supply chains.
The equity and debt transactions simplify Electra’s balance sheet, reducing total debt from US$67 million to US$27 million and strengthening the company’s financial flexibility. Insider participation—including investment by the CEO, CFO, vice presidents and board members—underscores alignment between management and shareholders.
“With construction of our cobalt refinery now fully funded and our balance sheet reset, we are entering the execution phase with the resources and focus needed to deliver North America’s first cobalt sulfate facility,” said Trent Mell, CEO. “This marks a turning point for Electra and a critical step in reducing foreign dependence in the battery supply chain. The coming together of our lenders, shareholders, and three levels of government underscores the strategic importance of this asset.
“Today, more than 90 percent of global cobalt sulfate production comes from China,” Mell added. “Establishing a resilient, transparent, and domestically controlled supply chain is essential for our most critical industries including automotive, defense, energy and infrastructure. Electra is proud to be part of the solution to strengthen North American supply security.”
“The financing and debt restructuring significantly de-risk Electra’s path forward,” said Marty Rendall, CFO. “A simplified capital structure and stronger financial position give us greater flexibility to advance construction and prepare for commissioning. Institutional demand for this offering highlights the growing conviction in the critical minerals sector and in Electra’s leadership within it.”
Electra also announced three new board appointments: David Stetson, an energy and mining executive; Gerard Hueber, a retired U.S. Navy Rear Admiral and former defense industry leader; and Jody Thomas, former National Security and Intelligence Advisor to the Prime Minister of Canada. These additions bolster Electra’s expertise at the intersection of critical mineral supply, industrial policy and national security.
Once operational, the Ontario refinery is expected to produce up to 6,500 tonnes of battery-grade cobalt sulfate annually—enough to support the manufacture of lithium-ion batteries for approximately one million electric vehicles, as well as strategic defense, energy storage and grid infrastructure applications.
During the construction phase, Electra will advance its Iron Creek cobalt project in Idaho, expand black mass recycling of battery scrap, and evaluate nickel sulfate refining opportunities to meet projected cathode material demand. These initiatives reinforce Electra’s role in building a secure, sustainable North American critical minerals supply chain.
