Electra Battery Materials Corporation (NASDAQ: ELBM) has released preliminary engineering results for a proposed two-phase nickel refinery in North America, with first-phase capital estimates ranging from US$530 million to US$675 million, according to a company statement.

The first phase, evaluated at a production capacity of approximately 20,000 tonnes per year of contained nickel, would process mine-derived feedstock into battery-grade nickel sulfate. Preliminary process modelling indicates nickel and cobalt recoveries of 97% or higher. Recovered cobalt hydroxide could serve as feedstock for Electra's existing cobalt refinery.

A second phase could expand the facility to process battery black mass, potentially adding another 20,000 tonnes per year of contained nickel capacity, along with cobalt, lithium, and graphite byproducts. Separate capital estimates for nickel metal production and the second-phase expansion have not yet been completed.

The study uses a preferred location in the southeastern United States as its site basis, though final site selection remains subject to further assessment and commercial arrangements. Electra said it will continue evaluating alternative locations in North America.

The proposed facility would use conventional hydrometallurgical processes. Electra said the project relies primarily on established processing methods rather than new technology.

"Our focus is on securing the feedstock, customer commitments and financing needed to support a development decision," said CEO Trent Mell. "We are working with governments and potential commercial partners to establish the conditions for a competitive North American nickel refinery serving industrial, military and battery customers."

Electra said it is engaging with governments on funding programs and with upstream and downstream partners on feedstock supply and offtake arrangements. Financing and commercial strategy are being advanced in parallel with engineering work.

The company noted that its immediate priority remains the completion and commissioning of its Ontario cobalt sulfate refinery, with the nickel refinery and recycling expansion described as longer-term opportunities.