Canada's Electra Battery Materials has completed a $34.5-million financing and $40-million debt equitisation, securing more than $80-million in funding and commitments to complete construction and commissioning of North America’s first cobalt sulphate refinery in Ontario.

The transactions, which transformed Electra’s balance sheet, reduce total debt from $67-million to $27-million and simplify the company’s capital structure. Insider participation, including from directors and management, has also strengthened strategic alignment with 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 CEO Trent Mell on Wednesday.

“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% of global cobalt sulphate production comes from China,” Mell added. “Establishing a resilient, transparent, and domestically controlled supply chain is essential for our most critical industries including automotive, defence, energy and infrastructure.”

CFO Marty Rendall said the financing and debt restructuring “significantly de-risk Electra’s path forward”. “A simplified capital structure and stronger financial position give us greater flexibility to advance construction and prepare for commissioning,” he said, noting strong institutional demand for the offering as evidence of growing conviction in the critical minerals sector.

The Temiskaming Shores refinery, already fully permitted and construction-ready, will produce up to 6 500 t/y of battery-grade cobalt sulphate, enough to support batteries for about one-million electric vehicles. 

Electra recently added three new directors to its board – David Stetson, Gerard Hueber and Jody Thomas – bringing experience from the mining, defence, and national security sectors.

Beyond the refinery, Electra owns the Iron Creek cobalt project in Idaho which could be a potential US feedstock source, expanding its black mass recycling programme, and assessing nickel sulphate refining opportunities in North America.