Electra Adds 70 Workers at Ontario Cobalt Refinery While Keeping $73 Million Budget on Track

Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V: ELBM) issued a construction progress report on October 26, 2026 for its cobalt sulfate refinery in Temiskaming Shores, Ontario.

Workforce doubles as installation work advances

The critical minerals processing facility, which is supported by the governments of the United States, Canada, and Ontario, has seen its on-site workforce climb to 130 people, roughly double the approximately 60 reported in the Company's August update.

Despite the ramp-up in headcount and activity, the project continues to track within its USD 73 million budget. Since the last update in August, the nature of the work on site has shifted. Foundations and steel erection have given way to equipment installation, building enclosure, and the installation of electrical and instrumentation systems.

Zero lost-time incidents recorded as site activity intensifies

The expansion of the workforce and the proliferation of active work areas have coincided with a period of heavier site activity.

Through it all, construction has proceeded with zero lost-time incidents, according to the Company's update, which attributed the safety record to a growing number of new workers and work areas that change as construction progresses.

Cobalt feed and offtake locked in through 2031

Underpinning the construction program is a set of commercial arrangements that the Company says secures both raw material supply and sales channels. An agreement with Glencore AG, announced August 20, 2026, secures 100% of the cobalt hydroxide feedstock needed for commissioning and ramp-up through 2027 and provides for long-term supply through 2031.

On the offtake side, approximately 60% of planned cobalt sulfate production through 2029 is committed to LG Energy Solution under a binding term sheet signed in March 2026. A term sheet with WMC Group AG, announced October 13, 2026, contemplates a five-year working capital and commercial partnership spanning feedstock finance, logistics, and marketing.

WMC has committed to make an investment in Electra upon execution of definitive agreements. Douglas Geniti, based in New York, is supporting customer development, including defense and industrial offtake.

Fresh schedule pressure from solvent extraction piping

One area of the project has drawn management's attention: the fabrication and installation of fiberglass-reinforced plastic (FRP) process piping in the solvent extraction area, where the projected timing has created schedule pressure. Following the recent award of the FRP contract, Electra is evaluating measures to accelerate this work.

With major permits in hand, major long-lead equipment largely on site, and the remaining process areas advancing, the Company expects any schedule adjustment, if required, to be modest.

Every process area now active, from crystallizer to silo

Construction is advancing across all of the refinery's process areas. In the crystallizer building, mechanical equipment within the crystallization circuit is installed. Process ductwork is on site and being staged for installation, off-site pipe fabrication is well underway, and the building enclosure, including wall cladding and roofing, is nearing completion.

The solvent extraction building has seen interior structural steel installation completed, allowing piping and electrical work to progress. Alignment of the modules is complete, and FRP lamination of the process equipment has commenced.

Within the existing refinery, flushing and removal of redundant brownfield equipment and piping is largely complete, and partition walls for the motor control centre room are finished. The product silo building has been erected, with roof decking and cladding now being installed to enclose the dry product storage, handling, and final packaging areas.

Electrical and instrumentation work is also advancing: installation of interior and exterior cable trays within the refinery is nearing completion, and the main power cable running from the refinery to the solvent extraction electrical house is complete.

Phase II construction of the tailings storage facility is underway, with civil works approximately 40% complete.

Contractors mapped to each principal process area

Electra is executing the build through a series of construction packages tied to the refinery's principal process areas. By work area, the major construction contractors are WB Melback Corporation for solvent extraction, Pro Pipe Construction Ltd., a subsidiary of Dalcon Construction, for the crystallizer, Kilmarnock Enterprises for the existing refinery, MECC for electrical work, and Pedersen Construction for the tailings storage facility.

Electra has also executed an agreement with FRP Systems Ltd. of Thunder Bay, Ontario, for the FRP process piping. Remaining engineering activity is largely focused on field-driven changes and construction support.

"Every area of the site is active, and the focus is moving from infrastructure to equipment," said Paolo Toscano, Vice President, Projects & Engineering. "Mechanical equipment is now installed in the crystallizer, the solvent extraction area is taking shape, and our commissioning team is already validating instruments and developing the laboratory methods we will use to certify product. We are building this refinery safely and with the operating team that will run it."

Commissioning team builds operational readiness program

The operating team, led by General Manager and Commissioning Leader Garzon Duenas, is developing the commissioning execution plan and operational readiness program, supported by a newly appointed Commissioning Lead.

Metso has been engaged to provide site advisory services through mechanical completion and commissioning, and a tender for commissioning services is being prepared. Readiness work is advancing on site as well.

The laboratory has completed analytical method development for battery-grade cobalt sulfate, Rockwell Automation control system work is progressing, and instrument validation is underway.

Alongside the skilled trades on site, Electra's owner's team continues to grow, with recent additions in health, safety and environment, maintenance, and the laboratory.

CEO points to domestic battery-grade cobalt supply

"North America needs a domestic source of battery-grade cobalt, and this refinery is becoming that source," said Trent Mell, CEO. "The progress to date reflects a focused team and a strong group of contractors working safely and moving this project toward commissioning. With feed secured, key offtake committed, and strategic partners alongside us, we are confident in the path ahead."

Permitted brownfield facility with defined annual capacity

Electra's refinery is a permitted brownfield facility designed to process approximately 18,000 tonnes of cobalt hydroxide feed per year, producing 5,120 tonnes per year of contained cobalt in battery-grade cobalt sulfate.