Electra Battery Materials Corporation has taken a decisive step toward establishing North America's inaugural battery-grade cobalt sulfate refinery by approving a substantial construction budget and establishing a comprehensive execution timeline. The company's Board of Directors has greenlit a $73 million construction budget, equivalent to approximately C$100 million, while setting clear milestones for bringing this strategically important facility into operation north of Toronto.
Strategic Milestones and Timeline
The approved budget will fund all remaining construction activities through mechanical completion, with commissioning activities expected to commence in the fourth quarter of 2026. Mechanical completion is targeted for the second quarter of 2027, followed by production ramp-up beginning in the third quarter of 2027. The company aims to achieve commercial production status by the fourth quarter of 2027, establishing a clear pathway from construction execution to full commercial operations within a two-year timeframe.
Execution Plan and Infrastructure
"Our mandate is clear. We are advancing this Refinery to completion with a defined budget, schedule and execution plan," stated Trent Mell, CEO of Electra Battery Materials. "This is a fully permitted brownfield asset with substantial infrastructure in place and funding commitments from allied governments. With major equipment procured and construction sequencing defined and baselined, we are positioned to transition from reactivation to full execution."
The majority of major mechanical and electrical equipment has already been procured, with long-lead items delivered to the site, significantly reducing procurement and supply chain risks. Engineering and construction sequencing is substantially advanced and baselined, providing enhanced cost visibility and schedule certainty for the project.
Construction Timeline and Key Milestones
The construction will proceed under a defined execution plan with specific target milestones:
- First Quarter 2026 – Award of SMPEI contract (structural, mechanical, piping, electrical, and instrumentation)
- Second Quarter 2026 – Full site mobilization
- Fourth Quarter 2026 – Early commissioning of select utilities and circuits
- Second Quarter 2027 – Mechanical completion
- Third Quarter 2027 – Start of production ramp-up
- Fourth Quarter 2027 – Commercial production
Financial Support and Government Backing
Electra has arranged approximately $82 million in aggregate financial support to fund Refinery construction, exceeding the approved $73 million construction budget. This includes $48 million in government grants and loans combined with $34 million in equity financing completed in October 2025.
The Refinery has secured significant funding commitments from multiple government entities, including the U.S. Department of Defense, the Government of Canada, and the Province of Ontario. This substantial government support underscores the project's strategic importance to North American critical minerals supply chains and the broader battery materials ecosystem.
Budget Development and Market Considerations
The approved $73 million construction budget reflects updated detailed engineering specifications, contractor input, and current market pricing conditions. Select commissioning activities are expected to begin prior to mechanical completion, with integrated commissioning and production ramp-up to follow completion of major construction works.
This development represents a significant advancement in North America's battery materials infrastructure, positioning Electra Battery Materials Corporation as a key player in the continent's transition toward domestic critical minerals processing capabilities. The project's progress comes at a crucial time as global supply chains seek diversification and regionalization of essential battery component manufacturing.
