Electra Battery Materials Corporation ("Electra") has announced that it has signed a battery recycling and cobalt sulfate supply agreement with Japanese conglomerate Marubeni Corporation ("Marubeni").

Highlights
With this agreement, Electra and Marubeni are committing to providing electric vehicle manufacturers and battery cell makers with high-quality, low carbon and traceable battery materials.

  • Memorandum of understanding encompasses sourcing of black mass derived from recycled lithium-ion batteries for Electra's Canadian refinery and marketing of Electra's cobalt sulfate in Japan
  • Marubeni's wide network of battery recyclers in Asia and elsewhere will assist in the sourcing of lithium-ion battery material for Electra's hydrometallurgical recycling operation in Ontario, Canada
  • Electra intends to market a portion of its cobalt production into existing lithium-ion battery supply chains in Japan that are serving the North American market, as the Company develops its domestic Battery Materials Park
  • Electra is on track to commission its near-zero carbon cobalt refinery in late 2022, positioning the Company as the only producer of battery grade cobalt in North America

Electra will benefit from Marubeni's expansive network of battery cell recyclers worldwide to secure a stable source of black mass and other recyclable materials for the Company's recycling operation, which is slated for commissioning in 2023. Electra will also leverage Marubeni's strong presence in Japan and Asia as a preferred facilitator of battery raw material flows into the regional EV supply chain.

Electra remains on track to commission its near-zero carbon cobalt refinery in late 2022, positioning the Company as the only producer of battery grade cobalt in North America. The cobalt facility is the first of a four-phased project that will result in North America's only integrated battery materials park, refining cobalt, nickel and black mass and converting the material into cathode precursor material for lithium-ion batteries.

"Marketing a portion of our cobalt production in Japan will lay the groundwork for further expansion opportunities as the North American market develops," said Trent Mell, CEO of Electra. "This partnership with Marubeni reflects the strong demand for North American battery materials as an alternative to legacy supply chains."

Michael Insulan, VP Commercial at Electra added: "The Japanese lithium-ion battery industry is very well established and will continue to grow. Marubeni's wide network of industry contacts in the battery cell and materials space, as well as in the recycling community, will help Electra to diversify its black mass sourcing options for our lithium-ion battery recycling operations."

Incentive Plan Grants

In accordance with the Company's 2021 Long-Term Incentive Plan, the Company has issued 639,959 Deferred Shares Units (DSUs), 205,000 Restricted Share Units (RSUs), 325,000 Performance Share Units (PSUs) and 4,000,935 stock options to Directors, Officers, Employees and Contractors of the Company.  Long-term incentive grants are an important retention and incentive tool for key employees, and a mechanism to align interests with shareholders.  DSUs vest immediately but may not be exercised until a director or officer ceases to serve the Company. RSUs will vest in three equal tranches and will be settled in shares.  PSUs will be subject to achievement of strategic priorities relating to the refinery project and will vest in two equal tranches, settling in shares. The stock options grant employees the right to purchase common shares of Electra at yesterday's closing price of $0.30 for a period of five years and vest over a three-year period. All grants are subject to the approval of the TSX Venture Exchange.