Electra Battery Materials Corp · TSXV:ELBM
Electra Battery Materials — Investor Presentation (October 2023)
32 slides from Electra Battery Materials's investor presentation, October 2023
Slide 1: Electra Battery Materials: Onshoring the EV Supply Chain
Electra Battery Materials ONSHORING THE EV SUPPLY CHAIN Investor Presentation October 2023
Slide 2: Forward Looking Statements
Forward Looking Statements All statements in this presentation other than statements of historical fact constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, and “forward-looking information” under similar Canadian legislati
Slide 3: Executing a multiprong strategy
Executing a multiprong strategy o Commission cobalt sulfate refinery o Recycle black mass o Expand into nickel sulfate production o Expand into Bécancour industrial park o Explore Idaho Cobalt Belt o Leverage low-carbon footprint and technical expertise Focused on providing North American supply of
Slide 4: Recent developments
Recent developments Raised $21.5M in gross proceeds with concurrent financings Released updated economics for cobalt refinery and black mass recycling Progressed with first plant-scale recycling of black mass in North America Signed MOU with Three Fires for battery waste recycling in Ontario Extende
Slide 5: The onshoring opportunity
The onshoring opportunity Nickel Processing Manganese Processing 7% o China dominates processing of EV battery materials* 32% o North American OEMs are looking to reduce reliance 68% on battery materials processed in China 93% China ROW China ROW o Governments are looking to reduce the geo-political
Slide 6: Outlook for EV sales is bullish
Outlook for EV sales is bullish 30% 28 Forecast EV Sales 22 17 Sales in Millions 13 10 3 CAGR over next 4 years* 6 3 7 2 2019 2020 2021 2022 2023 2024 2025 2026 Growth predicated on availability of critical minerals needed for batteries *Source S&P Capital IQ NASDAQ: ELBM | TSX.V: ELBM 6
Slide 7: Refinery project update
iJ inery projec Refi update
Slide 8: June 2021
June 2021 NASDAQ: ELBM | TSX.V: ELBM 8
Slide 9: September 2023
September 2023 NASDAQ: ELBM | TSX.V: ELBM 9
Slide 10: September 2023
September 2023 NASDAQ: ELBM | TSX.V: ELBM 10
Slide 11: Progress has been considerable
Progress has been considerable o $80M spent towards refinery project o Signed 5-yr strategic agreement with LG Energy Solution to supply battery grade cobalt o Launched first plant-scale black mass recycling trial in North America and recovered nickel, cobalt and lithium o Released inaugural Sustain
Slide 12: Updated refinery project economics
Updated refinery project economics Updated project costs: o Completed re-baseline engineering report on refinery project timelines and costs C$155 to $167.3M o Report prepared by EPCM contractor o Review completed by 3rd party-estimator Completion of re- o Increased costs driven by inflation, expans
Slide 13: Updated capital costs
Updated capital costs* Estimate Q2 2022 $104.2 Materials & Equipment $25.6 Construction in-direct $10.1 Existing Equipment $10.0 Freight $5.1 Re-baseline Low $155.0 Construction in-direct $5.8 Other $3.4 Contractor Fees $3.2 Re-baseline High $167.4 Increases driven by scope expansion, inflation and
Slide 14: Variances to original capital estimate
Variances to original capital estimate* Dir. Labour & Materials Freight Const. Indirects EPCM Owners’ Costs Fixed Fees +59% +491% +554% +173% +53% $98.0 $6.5 $15.7 $18.3 $11.0 $7.5 $61.6 $7.2 $6.7 $1.1 $2.4 $0.0 Original Re- Original Re- Original Re- Original Re- Original Re- Original Re- baseline b
Slide 15: Battery recycling
Battery recycling
Slide 16: Highlights of black mass scoping study
Highlights of black mass scoping study* EBITDA Forecasts $12.6 o Capital spend: US$6M $10.4 $9.9 $9.6 o Internal rate of return: 127% US$ Millions o Payback: 1 to 2 years o 2,500 tonnes of processed material /YR Year 1 Year 2 Year 3 Year 4 Low capital intensity with a high rate of return * Announced
Slide 17: Process to recover high value elements in batteries
Process to recover high value elements in batteries Recovery of high value elements contained in shredded lithium-ion batteries Black mass typically contains nickel, cobalt, lithium, copper, and graphite Recovered elements are processed and refined Recycling process produces multiple marketable prod
Slide 18: Plant scale recycling trial is ongoing
Plant scale recycling trial is ongoing o Large plant scale trial is underway at refinery complex o Using proprietary hydromet process previously tested o Objective is to recover high value metals for resale ⇢ Nickel, cobalt, lithium, manganese and graphite o Critical success factors for trial ⇢ Effe
Slide 19: Trial results have exceeded expectations
Trial results have exceeded expectations Recovery rates are at or superior to results achieve in lab setting First recovery of nickel-cobalt MHP via hydromet process Lithium-carbonate production is a potential game changer First customer shipment of nickel-cobalt MHP Strong interest in trial results
Slide 20: Opportunity to recover battery materials is high
Opportunity to recover battery materials is high Li-ion battery recycling availability 20% 600 534 480 384 384 400 337 GWh 284 223 200 174 CAGR through 2030 99 132 71 0 2020 2021 2022 2023 2024 2025 2026 20272028 2029 2030 Availability of expired lithium-ion batteries to grow with EV adoption NASDAQ
Slide 21: Next steps with black mass trial
Next steps with black mass trial o Ongoing optimization of hydromet process o Optimize flow sheet ⇢ Metsim (material balance) ⇢ Process flow diagrams ⇢ Early process engineering o Identify long-lead delivery items o Update scoping study o Develop summary report o Determine path to commercialization
Slide 22: Strategic developments & outlook
Strategic developments & outlook
Slide 23: Electra's EV Supply Chain Blueprint
Electra’s EV Supply Chain Blueprint Black mass recycling o Electra has a multiprong strategy o Underpinned by battery materials complex Cobalt sulfate production in Ontario in Ontario o Includes expansion to Becancour, Que Cobalt sulfate production in Bécancour o Includes expansion to nickel and man
Slide 24: Enhanced agreement with LG Energy Solution
Enhanced agreement with LG Energy Solution o 5-year strategic supply agreement o 19,000 tonnes of battery grade cobalt o Deliveries to start in 2025 o Represents 80% of refinery output during term o Value of agreement is approximately US$617M* Two-year extension and increase in amount of product shi
Slide 25: Battery waste recycling with First Nations group
Battery waste recycling with First Nations group o Three Fires is a First Nations owned investment group focused on generating wealth for its members o Announced plans to form JV with Electra in May o Committed to strategic investment in Electra o Planned Stellantis and VW battery plants sit on Thre
Slide 26: Area of focus for joint venture with Three Fires
Area of focus for joint venture with Three Fires Primary Refining Facility catchment area Toronto Moosonee Detroit Windsor Cochrane Quebec City Halifax Temiskaming Sudbury Montreal North Ottawa Bay 500km Source: Electra Battery Materials Corporation Boston LEGEND Toronto Gigafactories 200km Cities N
Slide 27: Opportunity at Bécancour
Opportunity at Bécancour o Bécancour is emerging as an important hub for the supply of low-carbon battery materials to the EV supply chain o Bécancour has attracted more than US$400 million of investments from stakeholders o Bécancour is being developed through joint investments from the Government
Slide 28: Capital structure
Capital structure* LTM Share Price (TSX-V: ELBM) Capitalization and Market Facts $4.50 Ticker – NASDAQ/TSX-V: ELBM $4.00 $3.50 Shares Outstanding2 55.2M $3.00 52 Week Range2 $0.80 - $4.37 $2.50 Current Share Price2 $0.96 $2.00 $1.50 Average Daily Volume3 260,000 $1.00 Market Cap2 $50M $0.50 Cash and
Slide 29: Management
Leadership team Management Trent Mell Mark Trevisiol Peter Park Michael Insulán Joe Racanelli Dave Marshall CEO & Director P.Eng CFO PhD Vice President, Vice President, Vice President, Vice President, Investor Relations Engineering Project Commercial Development Directors John Pollesel Gov. Butch Ot
Slide 30: Near-term milestones
Near-term milestones o Q3 – Delivery of key equipment to refinery o Q4 – Summary report of black mass trial o H2 2023 – Government funding decisions o H1 2024 – Bécancour prefeasibility study Multiple catalysts for value creation NASDAQ: ELBM | TSX.V: ELBM 30
Slide 31: Why Electra Battery Materials?
Why Electra Battery Materials? Multi-prong strategy to onshore EV supply chain Benefitting from Inflation Reduction Act and favorable outlook 5K tonnes Fully-permitted refinery with low-carbon footprint of cobalt contained Differentiated by low carbon emissions and technical expertise production per
Slide 32: Electra Battery Materials
Electra Battery Materials NASDAQ: ELBM TSX-V: ELBM Joe Racanelli, VP Investor Relations Info@ElectraBMC.com 416.900.3891
Electra Battery Materials — Investor Presentation (October 2023) on 6ix