Canadian Recycler Enhances North American Battery Supply Chain with New Recycling Facility

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Canadian Recycler Advances North American Battery Supply Chain

New facility targets gaps in critical minerals processing and recycling
(Credit: Unsplash.com)
Posted Tuesday, June 10, 2025, 10:30 am
Kaleigh Harrison

Electra Battery Materials has finalized a feasibility study for a new battery recycling plant aimed at addressing critical deficiencies in North America’s battery materials supply chain. The Toronto-based company announced on June 5th that a Class 3 Engineering Study supports the construction of a modular recycling facility adjacent to its existing cobalt sulfate refinery. This project is designed to recover high-value metals, including lithium, nickel, cobalt, manganese, and graphite, from both manufacturing scrap and end-of-life lithium-ion batteries. The recycling approach is backed by Electra’s proprietary hydrometallurgical process, which has been validated through extensive pilot programs. Additionally, the company’s commercial plans receive partial funding from Natural Resources Canada.

Strengthening Domestic Critical Minerals Processing

A key differentiator for Electra is its integrated approach. The cobalt recovered from the recycling operation will be directly fed into its cobalt sulfate refinery—one of the few permitted facilities of its kind in North America—which already has financial backing from Canadian and U.S. defense programs. This model minimizes the need to export strategic minerals for processing abroad, addressing a supply chain vulnerability in the current battery materials ecosystem where Asia dominates refining capacity. As battery manufacturing increases across North America, establishing such domestic capabilities is increasingly viewed as essential for energy security.

In addition to electric vehicles, the plant’s output is aimed at markets that include military batteries, backup power systems, and advanced energy storage solutions for grid stabilization—areas where reliability and resilience are critical. The facility will process black mass, a powder derived from shredded batteries, utilizing modular technology developed in collaboration with Singapore-based partner Green Li-ion. Enhancements made during this partnership provide Electra with proprietary advantages in the recycling process, enabling the company to deliver more value than just basic metals recovery.

Indigenous Partnership Expands Supply Chain Control

Electra is also advancing its upstream supply chain integration through a joint venture with the Three Fires Group, an Indigenous economic development corporation. The Aki Battery Recycling partnership will oversee battery collection and shredding, ensuring a steady supply of black mass for Electra’s plant. This collaboration offers multiple benefits: Indigenous communities gain access to long-term economic opportunities in the battery sector, while Electra strengthens domestic supply chain resilience and decreases reliance on imported black mass. The venture also promotes responsible recycling practices that align with sustainability goals.

Diversifying the supply chain remains a strategic priority, especially given ongoing geopolitical risks. Establishing local preprocessing capabilities enables North American recyclers to reduce exposure to foreign-controlled supply chains while enhancing transparency and traceability—both essential factors for automakers and battery OEMs facing increasing regulatory scrutiny.

Market Outlook and Next Steps

Electra plans to present the recycling plant study to downstream partners, including battery manufacturers and OEMs, to validate the project scale and secure offtake agreements. Their feedback will play a crucial role in determining final capacity decisions and project timelines. With its integrated refinery complex, Electra positions itself as a pioneer in North America’s limited battery recycling sector. Although Asian markets currently lead in global capacity, regulatory trends and industrial policies in the U.S. and Canada are driving a push for more local processing.
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