Electra begins testing North American cobalt for refinery feedstock

TORONTO - Electra Battery Materials Corporation (NASDAQ:ELBM; TSX-V:ELBM), a small-cap battery materials company with a market capitalization of $20.39 million, has initiated metallurgical testing on cobalt feedstock from two North American sources, the company announced Thursday. According to InvestingPro data, the company’s stock has declined nearly 13% over the past week, though analysts suggest the shares may be undervalued at current levels.

The testing program focuses on materials from Ontario’s historic Cobalt Camp, where Electra’s refinery is located, and from the company’s Iron Creek project in Idaho. The initiative aims to diversify Electra’s feedstock pipeline by incorporating domestic sources alongside existing international supply partners. With a total debt of $52.92 million and a current ratio of 0.06, InvestingPro analysis indicates the company faces significant short-term liquidity challenges.

According to the company, preliminary results from the North American feedstock program are expected by year-end and will inform potential modifications to the refinery’s processing capabilities, including a possible pressure oxidation circuit addition to handle complex concentrates.

"North American concentrates often contain elevated levels of arsenic and other impurities, which have made them difficult to process using conventional methods," said Dr. George Puvvada, Electra’s Vice President of Metallurgy & Technology.

The company’s laboratory is installing equipment to evaluate these new feedstocks through bench-scale testing to validate proposed enhancements to the leach circuit. Electra believes its hydrometallurgical process could potentially process materials that have historically been challenging for conventional smelting and refining.

Electra’s Iron Creek project in Idaho contains an indicated mineral resource of 4.4 million tonnes grading 0.19% cobalt and 0.73% copper, and an inferred resource of 2.2 million tonnes grading 0.08% cobalt and 1.34% copper, according to the company.

The company also announced it has entered into an At The Market Offering Agreement with H.C. Wainwright & Co., under which it may sell up to $5.5 million in common shares.

Electra’s refinery project is supported by a long-term offtake agreement with LG Energy Solution for up to 80% of output over the first five years, based on the press release statement.

In other recent news, Electra Battery Materials Corporation held its 2025 annual general and special meeting in Toronto, where shareholders approved all proposals on the agenda. Notably, the appointment of MNP LLP as external auditors was confirmed, and all five director nominees were elected to the board. In a separate development, H.C. Wainwright adjusted its price target for Electra Battery Materials, lowering it to $2.20 from $2.40, while maintaining a Buy rating. This adjustment comes after Electra’s announcement of completing a feasibility study for a modular battery recycling facility. The facility is expected to recover valuable materials such as lithium, nickel, cobalt, manganese, and graphite from lithium-ion battery manufacturing scrap and end-of-life batteries. These developments reflect ongoing strategic moves by Electra Battery Materials as it advances its recycling initiatives.

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