Electra Advances Phased Nickel Refining and Battery Recycling Project in North America

According to company reports, Electra Battery Materials Corporation has released preliminary engineering results for the first phase of a proposed two-phase nickel refinery designed to process mine-derived feedstock into battery-grade nickel sulfate, with a later phase potentially adding battery black mass recycling capacity.

The first phase, evaluated under a FEL-1 preliminary engineering study, would produce approximately 20,000 tonnes per year of contained nickel in the form of battery-grade nickel sulfate. Preliminary process modelling indicates nickel and cobalt recoveries of at least 97%. Recovered cobalt hydroxide could also be supplied as feedstock to Electra’s planned cobalt refinery.

The proposed refinery is intended to produce nickel products for battery, industrial and military applications. Electra said the facility would provide North American customers with an alternative to overseas processing, with product flexibility allowing it to supply battery manufacturers with nickel sulfate as well as industrial and military customers requiring nickel metal.

The project would use conventional hydrometallurgical processes based on Electra’s experience in cobalt refining and battery recycling. The company said the approach relies primarily on established processing methods rather than requiring the commercialization of new technology.

Preliminary capital estimates for the first-phase nickel sulfate refinery range from approximately US$530 million to US$675 million, depending on the feedstock configuration evaluated. The estimates are based on annual production of approximately 20,000 tonnes of contained nickel. Capital requirements for nickel metal production and the proposed second phase will be assessed separately.

The second phase could add capacity to process battery black mass, potentially increasing contained nickel capacity by another 20,000 tonnes per year while also recovering cobalt, lithium and graphite. Electra said the expansion would build on its existing black mass demonstration work and use hydrometallurgical processing to recover critical minerals from end-of-life batteries.

Engineering work completed so far includes preliminary process design, equipment sizing, site layout, infrastructure and logistics assessments, and capital and operating cost estimates. Further engineering is planned for the nickel metal production stream to establish product specifications, process requirements and associated capital needs.

The current study uses a preferred site in the southeastern United States as its basis, although Electra has not made a final site selection. The company said it will continue assessing potential locations across North America based on access to feedstock and customers, utilities, permitting requirements and the ability to accommodate the planned recycling expansion.

Electra is also pursuing government funding and commercial arrangements in parallel with engineering work. Discussions with potential upstream suppliers and downstream customers are focused on securing feedstock and offtake commitments needed to support future financing and development decisions.

The next stage will focus on site and permitting assessments, as well as refining equipment and utility requirements, effluent and tailings management plans, product specifications and cost estimates. Electra said the work is intended to establish the basis for advancing the project toward further engineering and a potential development decision.

The proposed nickel refinery remains a longer-term opportunity, while Electra’s immediate priority is completing and commissioning its Ontario cobalt sulfate refinery.

Source: Electra Battery Materials

SUNSHINE Spotlight: Electra’s preliminary engineering work outlines a first-phase nickel refinery capable of producing about 20,000 tonnes of contained nickel annually, with a potential second phase focused on battery black mass recycling.