Electra and Three Fires Group partner to recycle lithium-ion battery waste in Ontario

Electra Battery Materials Corporation has signed a memorandum of understanding ("MOU") with the Three Fires Group ("TFG") to form a joint venture focused on the recycling of lithium-ion battery waste in Ontario underpinned by Electra's propriety black mass processing capabilities that recovers high-value elements, including lithium, nickel, cobalt, and graphite.

"We are excited by the opportunity to work with the Three Fires Group and solve a pressing challenge of the EV battery supply chain, namely how to recycle and repurpose battery waste," says Trent Mell, CEO of Electra. "Our joint venture will pave the way for producers of various lithium-ion batteries and energy storage equipment in Ontario to reduce their waste, reuse high-value and increasingly scarce commodities like nickel and cobalt, and lower carbon emissions in their manufacturing activities.

"The Three Fires Group has developed an Indigenous leadership position in fostering the transition to clean, sustainable energy through its relationships with federal and provincial agencies and various clean energy providers. Working with the Three Fires Group will allow us to get access to a steady stream of black mass material and address the growing demand for critical minerals."

Under the joint venture, Electra and the Three Fires Group will collaborate to source and process lithium-ion battery waste generated by manufacturers of current and future battery cells, electric vehicles, and energy storage systems. The waste will be processed at a facility located in southern Ontario to produce black mass material that will be further refined using Electra's hydrometallurgical process at its refinery complex north of Toronto.

As part of the MOU, Electra and the Three Fires Group have agreed to work together to secure a net-zero industrial facility that can be used to shred and separate lithium-ion batteries and produce black mass material. The partners have also agreed to collaborate on the development of economic studies of sourcing of engineering, procurement, construction, and management requirements necessary to launch the battery waste recycling facility.

Several electric vehicle facilities are moving forward across the treaty areas of the Three Fires Confederacy in southwestern Ontario, including recent announcements by the Volkswagen Group, LG-Stellantis, Toyota, and GM CAMI. In parallel, southwestern Ontario is seeing dozens of proposals for transmission grid-connected battery energy storage systems. Research firm MarketsandMarkets estimates the lithium-ion battery recycling market to grow to $35.1 billion by 2031 from $6.5 billion in 2022.