08:35 AM EST, 01/28/2025 (MT Newswires) -- Electra Battery Materials ( ELBM ) fell 2% in U.S. pre-market on Tuesday after the company began the feasibility level engineering study to build a battery recycling refinery adjacent to its cobalt refinery north of Toronto.

The study will build on the technology and expertise accumulated during a year-long black mass recycling trial, whereby the company produced technical grade lithium and a nickel and cobalt product from end-of-life lithium batteries. Electra's Aki Battery Recycling joint venture with the Three Fires Group, will build a pretreatment facility for battery scrap, with the resulting black mass material shipped to Electra for refining.

Black mass contains high-value elements, including lithium, nickel, cobalt, manganese, copper, and graphite, which can be recovered and recycled to make new batteries.

"Having developed a proprietary hydrometallurgical process, this feasibility study is a critical step in advancing towards a commercial recycling facility," said Electra's Vice President of Project Development Mark Trevisiol. "It builds on the knowledge gained from our previous 40-tonne demonstration plant and allows us to optimize our processes for a scalable commercial operation."

Subject to the outcome of the feasibility study, Electra may choose to buy processing equipment through Green Li-ion, a U.S.-based engineered services and recycling technology solutions provider, for operation at Electra's Refinery Site in Ontario.

Shares of the company closed down $0.090 or 4%, to $2.070 on Monday on the TSX Venture Exchange.