Electra Battery Materials Corporation (Electra), a listed Canadian battery material recycler, has received an investment commitment from the Three Fires Group, a First Nations-owned investment group, to advance Electra's battery materials park and its battery recycling strategy across North America. This investment would be a part of Electra's larger financing initiative, aiming to raise up to CAD 20 million (~USD 15 million).

Electra would use the funds to accelerate the development of its recycling refinery with a capacity of 2,500 tons per annum, resulting in immediate cash flow with minimal capital requirements while also allowing progress on its cobalt sulfate refinery. 

The investment will be facilitated through a non-brokered private placement of Electra’s units at CAD 1.10 (~USD 0.8) per unit. The exact investment amount and terms from Three Fires are pending approval from shareholder First Nation, funding sources, and consultations with the federal and provincial governments. Completion of the strategic investment is also subject to Electra securing additional financing of not less than CAD 10 million (~USD 7.6 million). 

This investment would also grant Three Fires the right to nominate up to two members of Electra’s board of directors upon closing and participate in future equity offerings to maintain its pro rata percentage ownership in the company.

Analyst QuickTake: In May 2023, Electra Battery Materials and Three Fires Group announced plans to form a joint venture focused on lithium-ion battery waste recycling in Ontario. Since then, the two companies have had active discussions to determine how they can effectively use their expertise and experiences in the rapidly expanding lithium-ion battery recycling market.