By Adriano Marchese
Electra Battery Materials Corp. said Wednesday that it intends to increase the design capacity of its cobalt refinery by 30% in response to higher demand.
The Canadian battery materials company, formerly First Cobalt Corp., said that the company would invest in additional capacity for its crystallizer circuit, which will result in a new expected capacity of 6,500 metric tons of annual cobalt production.
Previously, the company had planned for 5,000 tons a year set out in its original feasibility study design.
The company said that the new estimated budget for the enlarged circuit is $67 million, up from previous estimates of $60 million, and that the commissioning of the cobalt refinery remains on schedule for the fourth quarter of next year.
"The strength of the North American electric vehicle market year to date and the growth forecasts of automakers informed our decision to invest in additional capacity even before the initial capacity has been brought online," President and Chief Executive Officer Trent Mell said.
Write to Adriano Marchese at adriano.marchese@wsj.com