Electra Battery Materials Details $675M Nickel Refinery Plan

Electra Battery Materials has released preliminary engineering results for a proposed two-phase nickel refinery in the United States. The company targets 20,000 tonnes of annual production to support domestic supply chains. The project is currently in the FEL-1 study phase and intends to reduce North American reliance on foreign processing for critical battery minerals.

"We need the capacity to refine nickel for industrial, military and battery applications," said Trent Mell, CEO of Electra Battery Materials, in a statement regarding the release.

Project Scope and Financial Estimates

The initial phase of the proposed facility is designed to produce approximately 20,000 tonnes per year of battery-grade nickel sulfate. According to the company’s latest announcement, the estimated capital expenditure for this first phase ranges between $530 million and $675 million.

Preliminary process modeling suggests the facility will achieve nickel and cobalt recovery rates of 97% or higher. The design utilizes conventional hydrometallurgical processes, which are standard for extracting metals from concentrated ores and recycled battery materials.

Potential for Expansion and Recycling

Electra’s strategy includes a potential second phase that would double the refinery's nickel output to 40,000 tonnes per year. This expansion would incorporate the processing of black mass, which is the shredded material derived from recycled lithium-ion batteries. This secondary phase is expected to recover cobalt, lithium, and graphite byproducts.

Domestic Refining Considerations

The project remains in the early stages of development. Electra is currently evaluating final site selection, long-term offtake agreements, and the capital structure required to move forward.

"Our focus is on securing the feedstock, customer commitments and financing needed to support a development decision," said Trent Mell, CEO of Electra Battery Materials.

As the automotive and defense sectors seek to localize supply chains for energy storage, the viability of such domestic refineries depends on balancing capital costs against the security of supply for battery-grade materials. The transition from FEL-1 engineering to a final investment decision will depend on the company's ability to secure industrial partnerships and financial backing to reach commercial scale.