Electra Awarded $20 Million from U.S. Department of Defense Under the Defense Production Act
Summary
The award was made pursuant to Title III of the Defense Production Act (DPA) to expand domestic production capability and is funded through the Additional Ukraine Supplemental Appropriations Act.The funds will support the construction and commissioning of North Americas only cobalt sulfate refinery, capable of producing battery grade materials for lithium-ion batteries. The Company is expanding an existing plant, with permits in hand, construction well underway and most long lead custom equipment at site.Once fully commissioned, the facility can produce 6,500 tonnes of cobalt per year, which would support the production of over 1 million EVs annually. In 2023, the Company operated a plant-scale black mass demonstration plant at its refinery complex, recovering lithium, nickel, cobalt and other critical minerals from batteries. To qualify for funding opportunities under DPA Title III, proposed projects must meet the following criteria: The industrial resource, material, or critical technology item is essential to the national defense; Without Presidential action under 50 U.S. Code \xa74533, United States industry cannot reasonably be expected to provide the capability for the needed industrial resource, material, or critical technology item in a timely manner; and Purchases, purchase commitments, or other action pursuant to 50 U.S. Code \xa74533 are the most cost effective, expedient, and practical alternative method for meeting the need.Canada is one of the United States closest allies that is eligible for DPA Title III funding, indicating the strong need to secure the global industrial base.Electra is a processor of low-carbon, ethically sourced battery materials. Except where required by applicable law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.