Electra Battery Materials Corporation has released preliminary engineering results for the first phase of a proposed nickel refinery designed to convert mine-derived feedstock and recycled battery black mass into battery-grade nickel sulfate and nickel metal.

The study evaluates an initial annual production capacity of approximately 20,000 tonnes of contained nickel. Process modelling indicates nickel and cobalt recoveries of 97% or higher, with recovered cobalt hydroxide providing a potential secondary feed stream for the company’s existing cobalt operations. Preliminary capital expenditure estimates for the first phase range from approximately US$530 million to US$675 million depending on the selected feedstock configuration.

“Electra is applying the expertise developed through our Ontario cobalt sulfate refinery and battery recycling work to advance a new source of nickel sulfate and nickel metal,” said Trent Mell, CEO. “Our goal is to strengthen critical mineral supply chains in the United States and Canada and reduce reliance on Chinese processing.”

The proposed facility would utilize conventional hydrometallurgical processes to treat domestic mine supply and intermediates. Product flexibility is a central design objective, allowing the plant to supply battery manufacturers with nickel sulfate alongside high-purity nickel metal tailored for industrial, military and aerospace applications. A potential second phase could add an additional 20,000 tonnes per year of nickel capacity by processing battery black mass, yielding secondary lithium, graphite and cobalt byproducts.

The engineering work completed encompasses preliminary process design, equipment sizing, site layout, and infrastructure assessments. Electra is utilizing a preferred location in the southeastern United States as the site basis for the study, though final selection remains subject to ongoing evaluation of utilities, permitting requirements and potential for the second-phase recycling expansion.

Parallel workstreams are advancing financing strategies, government funding applications, and discussions with partners regarding feedstock supply and product offtake agreements. Further engineering is planned for the nickel metal production circuit to refine product specifications, process scope and capital requirements.

The new nickel initiative builds on the company’s core development portfolio, anchored by the construction of North America’s cobalt sulfate refinery in Temiskaming Shores, Ontario. That facility operates under a US$73 million construction budget approved by the board in February 2026 and is supported by a long-term feedstock supply agreement with Glencore AG extending through December 2031. Commissioning activities for the Ontario refinery are scheduled to commence in the fourth quarter of 2026, with mechanical completion targeted for the second quarter of 2027.

Read the full announcement: Electra Advances Phased Nickel Refining and Battery Recycling Strategy for North America