12:04 PM EDT, 03/24/2025 (MT Newswires) -- (Updates shares.)

Electra Battery Materials ( ELBM ) shares were last seen down 7.2% after the company on Monday said it received a non-binding letter of intent from the Canadian government for $20 million to support the completion of its cobalt refinery complex project in Ontario.

The project is North America's first battery-grade cobalt refinery and will enable domestic production of batteries for up to one million electric vehicles annually, the company said.

The letter of intent, agreed to on January 27, expresses an interest and intent to work toward a final term sheet, but there is no guarantee that final agreements will be reached and funding will be provided to Electra.

LG Energy Solution will purchase up to 80% of the project's future production and buyer interest for the remainder exceeds capacity.

"By addressing domestic shortfalls and reducing reliance on China, where approximately 90% of the world's cobalt is currently refined, we are fostering a more resilient, sustainable, and self-reliant future for North America," chief executive Trent Mell said.

Separately, Electra said it plans to raise up to US$3.5 million in a non-brokered private placement of units priced at US$1.12 apiece. Each unit will consist of a share and a transferable 18-month warrant to buy a second share for US$1.40..

Proceeds will be used to advance the company's refinery project and for general corporate purposes.

Electra shares were last seen down $0.13 to $1.67 on the TSX Venture Exchange.

Price: 1.67, Change: -0.13, Percent Change: -7.22