Electra Battery Materials said Oct. 26 that construction of its cobalt sulfate refinery in Temiskaming Shores, Ontario, remains within its US$73 million budget as work advances from structural construction to equipment installation and commissioning preparation. The site workforce has grown to 130 people from approximately 60 in August.

Mechanical equipment is installed in the crystallization circuit, and structural steel installation and module alignment are complete in the solvent extraction building. Fiberglass-reinforced plastic (FRP) lamination of process equipment has begun, while electrical cable tray installation is nearing completion. Civil work for Phase II of the tailings storage facility is approximately 40% complete.

The company identified potential schedule pressure related to the fabrication and installation of FRP process piping in the solvent extraction area. Following the recent award of the piping contract, Electra is evaluating measures to accelerate the work. The company expects any schedule adjustment, if needed, to be modest.

Commissioning preparations are also advancing. Instrument validation is underway, laboratory analytical methods for certifying battery-grade cobalt sulfate have been developed, and work on the Rockwell Automation control system is progressing. Electra has engaged Metso for site advisory services through mechanical completion and commissioning, and is preparing a tender for commissioning services.

Why it Matters

The project illustrates the transition from civil and structural construction to process equipment integration, piping installation, instrumentation and operational readiness. Coordination among these work packages will be important as the refinery moves toward commissioning, particularly with FRP process piping identified as a potential schedule constraint.

The refinery is designed to process approximately 18,000 metric tons of cobalt hydroxide feed annually and produce 5,120 metric tons per year of contained cobalt in battery-grade cobalt sulfate. Cobalt is used in lithium-ion battery cathodes and other applications, including high-strength alloys for aerospace and defense. The Canadian government announced a $20 million investment in the project in May to support domestic battery-grade cobalt sulfate production and strengthen Canada's critical minerals supply chain.

Electra previously targeted initial commissioning activities for the fourth quarter of 2026, mechanical completion in the second quarter of 2027 and commercial production in the fourth quarter of 2027. The company reiterated that construction remains within budget in its latest update but did not announce revised milestone dates.