Electra Battery Materials - Commencing operations in Q4'22 Investor Presentation - May 2022
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Electra Battery Materials Commencing operations in Q4’22 NASDAQ: ELBM; TSX-V: ELBM Investor Presentation – May 2022
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 legislation and are based on the reasonable expectations, estimates and projections of Electra Battery Materials Corporation as of the date of this presentation. Forward-looking statements and forward-looking information include, without limitation, possible events, trends and opportunities and statements, including with respect to the state of the cobalt market, global market conditions, the proposed development of the Electra Battery Materials Park, the processing of raw material feedstocks, the ability to secure financing, results of exploration activities, potential acquisitions, capital expenditures, successful development of assets, currency fluctuations, government policy and regulation and environmental regulation. In particular, forward-looking information included in this presentation includes, without limitation, the opportunity to restart the Electra refinery and targeted metrics. Generally, forward-looking statements and forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes”, or variations of such words or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements and forward-looking information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and forward-looking information. Such factors include changes in supply and demand for cobalt ,nickel and other battery raw materials, the results of metallurgical and engineering studies, changes in competitive pressures, timing and amount of capital expenditures, changes in capital markets, changes in exchange rates, unexpected geological or environmental conditions, changes in and the effects of, government legislation, taxation and regulations and political or economic developments, success in attracting officers for the future success of the Company’s business, success in obtaining any required additional financing to advance strategic priorities, and risks associated with obtaining necessary licenses or permits. Many of these uncertainties and contingencies can affect the Company’s actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements and forward-looking information made by, or on behalf of, the Company. There can be no assurance that forward-looking statements and forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. All of the forward-looking statements and forward-looking information made in this presentation are qualified by these cautionary statements. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated. There can be no assurance that such statements will prove to be accurate, as actual results could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except in accordance with applicable securities laws. Timelines used in this presentation are for the purpose of aiding management in the planning and implementation of the projects and are not based on a detailed assessment of project requirements. Consequently, the timelines are subject to material revision as subsequent technical reports and assessments are completed. Future phases of the project are contingent upon completion of preceding phases. Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction. Mark Trevisiol, P.Eng. and Dan Pace, P.Geo are Qualified Persons as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Project (“NI 43-101”) and both are employed by Electra. They have reviewed and approved the technical content in this presentation. NASDAQ: ELBM | TSX.V: ELBM 2
Strategy: Onshore EV Supply Chain
Electra Battery Materials Rationale
Battery materials company – OEM and cell maker requirement for an integrated, localised and
environmentally sustainable solution for battery materials
Commission battery grade cobalt sulfate plant (Q4) sourcing in North America
2022 – Third-party cobalt hydroxide feed
– North American need for industrial hub to convert regional nickel
– Iron Creek primary cobalt extraction
resources to battery grade sulfate
2023 Lithium-ion battery recycling
Battery grade nickel sulfate production
2024
– Third-party North American nickel raw material feed
North America’s
2025 Battery precursor manufacturing integrated, sustainable
National or international expansion
battery materials solution
2023-26
Iron Creek cobalt-copper project development
Products Cobalt, Nickel, Lithium, Copper, Graphite, Precursors
NASDAQ: ELBM | TSX.V: ELBM 3
Strategically located in North America
Electra China
Battery pipeline of >600 GWh,
sufficient to supply more than Distance to USA2 1,350 km 13,250 km 10x
9 million full-battery electric
vehicles per year1 Distance to Europe3 6,100 km 19,500 km 3x
Funded to production in Q4 2022
Only hydrometallurgical facility of its kind
in North America
Up to 51% lower GHGs than Chinese
peers due to hydroelectric power grid
Eliminates tariffs imposed on
Chinese imports
Existing cell plant Future cell plant
Pilot cell plant Electra Battery Materials Park
1. Assuming average vehicle pack size of 67kWh (2021 average in North American market). 2. Rotterdam. 3. Frankfort, KY
Source: Electra Battery Materials, CIC energiGUNE
NASDAQ: ELBM | TSX.V: ELBM 4
Leadership Team
Management
Trent Mell Mark Trevisiol Renata Cardoso Michael Insulán Regan P. Watts Ken Murray Dr. George Puvvada
CEO & Director P.Eng Vice President, PhD Vice President, Project Manager, P.Eng., PMP, PhD
Vice President, Corporate Affairs Refinery Expansion Refinery
Vice President, Sustainability and
Commercial Technical Manager
Project Development Low Carbon
Board of Directors
John Pollesel Garett Macdonald Gov. Butch Otter Susan Uthayakumar
Chairman Director Director Director
CEO, President & CEO , Retired, Governor of Idaho MD, Chief Energy and
Boreal Agrominerals Inc Maritime Resources (’07-’19) Sustainability Officer,
Prologis
NASDAQ: ELBM | TSX.V: ELBM 5
Battery Materials Park Ontario, Canada
Battery Materials Park – Unique Position in North America
Electra’s ambition is to operate in the first four stages of the battery supply chain
Primary extraction Recycling Primary refining PCAM1 CAM2 manufacturing Cell manufacturing Electric vehicle
manufacturing assembly
Primary extraction Recycling Refining PCAM CAM Cells Electric vehicles
Selection of lithium-ion battery supply chain
participants in North America
Electra Battery Materials
Tesla
Ford
GM
Toyota
Stellantis
SK Innovation
LG Chem
Li-Cycle
Redwood Materials
1. Lithium-ion battery precursor material; 2. Lithium-ion battery cathode active materials
Source: Electra Battery Materials
NASDAQ: ELBM | TSX.V: ELBM 7
Ahead of the Pack
Existing refinery, infrastructure and permits
– Hydrometallurgical facility with a 10-year operating history
– Only facility of its kind in North America, capable of supplying
the electric vehicle market
– Located in Ontario, Canada, a location with exceptional
infrastructure and labour force in place
– Modular design to grow with the EV market
– 51% lower GHGs than Chinese peers, in part owing to
hydroelectric power grid
– Work commenced to commission lithium-ion battery recycling
line in 2023
Cathode materials require extremely
high purity levels – it all starts here
Source: Electra Battery Materials
NASDAQ: ELBM | TSX.V: ELBM 8
Phase 1 – Battery Grade Cobalt Sulfate
Commissioning in December 2022
Global battery grade sulfate capacity, 2023 (kt Co)
– China dominates global cobalt sulfate production with
80% market share China Ex. China
Huayou 30.0
– Finland hosts the only significant cobalt sulfate
refining outside Asia GEM 21.0
Kokkola 14.5
– Funded US$67 million capital program to achieve
Tengyuan 8.5
commissioning in December 2022
Jiana New Energy 8.0
– Electra will operate the only refinery in North America Umicore China 8.0
– 50 tpd cobalt hydroxide feed from Glencore and IXM Various 7.5
– Ramping up to 6,500t battery grade cobalt per year Greatpower 6.5
Electra 5.0 1.5 6.5
– Stratton Metals backstop purchase option while
Chengtun 4.5
offtake contracts are finalized Electra’s Canadian Refinery
Harjavalta/NN 2.4
– North American market share: 100% (100%1)
Olen 1.5 – Ex. China market share: 21% (26%1)
Jinchuan 0.5 – Global market share: 4% (5%1)
1. Based on 2022 forecast, when Electra’s refinery commences operations.
Source: Electra Battery Materials, BNEF
NASDAQ: ELBM | TSX.V: ELBM 9
Phase 2 – Recycling
Lack of hydrometallurgical refining capacity to support established network of battery shredders
Battery collection and shredding process
+ -
+ - + -
+ -
+ - + -
+ -
Pack removed Loaded for transport Transported to Discharged Stored Dismantled
from EV recycling facility
Source: Electra Battery Materials
Hydrometallurgical refining of “black mass” is superior to pyrometallurgy
Lithium and graphite not recovered
Higher yields, significantly lower energy intensity and lower GHG
emissions, compared to pyrometallurgical facilities
NASDAQ: ELBM | TSX.V: ELBM 10PHASE 2 – RECYCLING
Demonstration Plant in 2022; Commissioning in 2023
Recovery of nickel, cobalt, lithium, copper
and graphite
US$3M demonstration plant in 2022
using existing facilities and equipment
Commercialization in 2023
Hydrometallurgical process and
hydroelectric power ensures nearly zero
GHG emissions
Engineering work completed by Hatch
and met work by SGS Lakefield
Source: Electra Battery Materials
NASDAQ: ELBM | TSX.V: ELBM 11PHASE 2 – RECYCLING
Established Network of Black Mass Supply
Modular approach
– 25+ potential black mass partners
– Marubeni alliance to leverage Battery Materials Park
Ontario
network in Asia and elsewhere to
source battery material for Electra
– Module 1: Scalable and initially
targeting 4,500t black mass, treating
multiple types of black mass
– Module 2: Expected to treat constant
quality stream from cell partner
– Further modules will be designed
according to black mass types
Source: Electra Battery Materials
NASDAQ: ELBM | TSX.V: ELBM 12Phase 3 – Battery Grade Nickel Sulfate
Large nickel endowment but no battery grade nickel production in North America
Yellowknife
NWT
Thompson Nickel Belt
Manitoba
Ungava Peninsula
– Glencore and Talon collaborating with Electra on
Quebec government-sponsored nickel sulfate refinery study
Voisey’s Bay
Stewart
Newfoundland
B.C. – Sufficient nickel and cobalt supply potential in North
Duluth Complex
Minnesota
‘Ring of Fire’
Ontario
America to fully sustain region’s long-term requirements
Amos
Idaho Cobalt Belt
Quebec – Electra’s Battery Materials Park strategically located
Idaho Cobalt Camp
Ontario – OEM demand expected to fast-track North American nickel
Timmins
Ontario supply, pushing down long-term raw material costs
Sudbury Basin
Ontario
through economies of scale
Significant nickel
operations and projects – Carbon footprint of Canadian nickel sulfate production
Significant cobalt
operations and projects Battery Materials Park estimated to be up to 7x lower than conversion of
Ontario
Indonesian nickel deposits
Source: Electra Battery Materials, USGS
NASDAQ: ELBM | TSX.V: ELBM 13Phase 4 – Precursor Cathode Active Materials (PCAM)
Improved margins and lowed GHGs when PCAM is co-located with refining and recycling
Government of Canada and Government of Ontario sponsoring engineering studies Battery Materials Park concluded with PCAM production
for PCAM partnership realization
– Sulfate plants constructed at optimal industrial permitting and raw material feed
intersect
– Precursor plants ‘attracted’ to sulfate location as a result of lower raw material
feed costs
Battery Materials Park CAM
Refinery (Sulfates) Cells
PCAM Electric vehicles
Recycling Battery and EV Park
Harjavalta Industrial Park (Finland) Quzhou Industrial Park (China)
Source: Electra Battery Materials
NASDAQ: ELBM | TSX.V: ELBM 14Iron Creek Project Idaho, USA
Idaho Cobalt Belt
Critical Minerals in the USA Ram/ICP
Blackbird Salmon
Largest unmined cobalt resource in the
Iron Creek
U.S. (USGS 2017)
28
– America’s best opportunity to reduce
reliance of DRC and China for
cobalt supply
– High grade deposits amenable to
underground mining with a minimal 10 km 93
environmental footprint
Challis
– 53 Mlbs of Cu and 14 Mlbs of Co produced
historically
– Many prospects and targets in the
80 km x 20 km belt which have seen
minimal modern exploration
NASDAQ: ELBM | TSX.V: ELBM 16Iron Creek Resource Estimate
High grade, underground, open in all directions
43-101 completed in Resource remains Step-out and
2019 with 105 holes open along strike regional drilling
for 29,000m and down dip expected to grow
the size of the
deposit and identify
new targets Indicated Resource Inferred Resource
Collar and drill-hole trace Adit Surface projection of siltite contact
CoEq Cobalt Cobalt Copper Copper
Category Tonnes
(%) (%) (MIbs) (%) (MIbs)
Indicated 2,154,000 0.32 0.26 12.3 0.61 29.1
Inferred 2,676,000 0.28 0.22 12.7 0.68 39.9
Prepared by Mine Development Associates in compliance with National Instrument 43-101 (“NI 43-
101”) - available on SEDAR.
A cutoff grade of 0.18% CoEq is used for the resource calculation and deemed viable for potentially
NASDAQ: ELBM | TSX.V: ELBM underground minable material. %CoEq = %Co + (%Cu/10) 172021 Drill Program
– 2433 m drilled in 6 holes
– Targeted extensions of the mineral
system along strike
– Extended the mineral system to the
west, targeting extensions of both
the hangingwall Cu zone and the
footwall Co zone
– Extended the mineral system to the
east down dip targeting the deeper
portions of the Co zone
– Assays results:
– Five of six exploration holes drilled
intersected high grade cobalt
mineralization
NASDAQ: ELBM | TSX.V: ELBM 18Additional Targets
Ruby Zone and other targets support a regional program to identify new targets
Iron Creek, West Fork and Redcastle properties – 2021 Acquisitions
Challis Volcanics
Banded Siltite
Argillite-Siltite
Coarse Siltite
Interpreted Contact
Interpreted Fault
Bedding Orientation
Iron Creek Co-Cu Resource
Surface Projection
Land package more than tripled in 2021 to 23 km2 with acquisition of West Fork and Redcastle properties
NASDAQ: ELBM | TSX.V: ELBM 19Valuation and Corporate Information
Cobalt Sulfate Plant – Production and EBITDA Profile 1
Production (tonnes of cobalt) EBITDA (US$ millions) Trading – EV to forward EBITDA Key Assumptions
6,500
40.1 Cobalt sulfate price of
5,750 $37.25/lb (spot)
34.4
4,375 Cobalt metal price of
8-10x $34.33/lb (spot)
24.1
Cobalt hydroxide payability
of 89% (spot)
Commissioning
Commissioning
3-5x
Operating costs and
recoveries in line with
internal technical estimates
(commercially sensitive)
2022 2023E 2024E 2025E 2022 2023E 2024E 2025E Chemical peers Electra Current
1 Commissioning in December 2022 with ramp up to 5,000 tpa run rate by June 2023 and 6,500 tpa run rate by July 2024.
NASDAQ: ELBM | TSX.V: ELBM 21Electra Strategic Plan – Ontario Battery Materials Park
Cobalt Sulfate Plant Battery Recycling Nickel Sulfate PCAM
Metal Production
5,750 6,500 6,500
4,375
2023 2024 2025 2026
NASDAQ: ELBM | TSX.V: ELBM 22Share Structure
NASDAQ: ELBM; TSX-V: ELBM Research coverage
Share Price (May 10, 2022) C$4.79
52 Week High C$7.65 Target Price
52 Week low C$4.51
Average volume (30-day) 190,926 U$10.40
Capitalization Million
Shares Outstanding 33.0
U$11.00
Options (av $5.94) 1.0
Warrants (av $7.56) 1.3
Fully-Diluted Shares Outstanding 35.0 U$11.52/C$14.40
Market Capitalization C$149.66
Convertible Debt (6.95%) US$36.0
Average target price U$10.97
Working Capital (Dec. 31, 2021) C$69 (incl. govt commitments)
NASDAQ: ELBM | TSX.V: ELBM 23Why Electra Battery Materials?
– North America needs precursor cathode active
materials (PCAM) to support new cell plants
– Electra can deliver this faster than anyone due to
– Existing permitted hydrometallurgical site
– 10 months from commercial production
– Proximity to nickel feed; established black mass
sources
– Infrastructure
– Hydroelectric power
– Peer-leading ESG commitments through recycling, a
low carbon footprint, traceability and a shortened and
secure domestic supply chain
NASDAQ: ELBM | TSX.V: ELBM 24Environmental, Social & Governance
Our Approach to ESG
Our mission is to produce the world’s most sustainable
battery materials
Low Responsible Strong governance
Environmental Sourcing and social
Footprint responsibility
NASDAQ: ELBM | TSX.V: ELBM 26Low Environmental Footprint
We take a proactive, risk-based approach to Life Cycle Assessment, Cobalt Refinery
environmental management, with robust
measures that help ensure we minimize our
environmental impact, while ensuring the viability 51%
of the environment for future generations. In line lower CO2 emissions1
with our overall approach to responsible mining, 30%
the 'zero harm' principle will guide our approach 73%
lower eutrophication
to environmental management lower water consumption1
potential1
At Iron Creek, underground ore sorting is one Removes ~1,500,0002
example of how we are working to reduce our combustion engines from the road every year1
environmental footprint (concentrate the ore for
shipping and processing, fewer trucks on the CO2 reduction of
road and less processing energy = lower 3m tonnes/year1
greenhouse gas emissions)
1. Based on a peer comparison life cycle assessment conducted by Minviro Ltd.; 2. Assuming 50kWh per unit high-nickel NCM
Source: Electra Battery Materials
NASDAQ: ELBM | TSX.V: ELBM 27Onshoring’s ESG Advantage
Electra’s Phase 1 has 40% lower CO2 freight emissions compared to shipments from China
Sea freight, Durban to Shanghai: 1.2t CO2
Sea freight, Shanghai to Vancouver: 0.9t CO2
Road transport, Vancouver to Kentucky: 0.6t CO2
1.5 tonnes of CO2
per container
2.7 tonnes of CO2 per container from China USA from Electra
China
Pacific Ocean
Sea freight, Durban to Montreal: 1.2t CO2
Existing cell plant Future cell plant Road transport, Montreal to Electra plant: 0.1t CO2
Road transport, Electra plant to Kentucky: 0.2t CO2
Pilot cell plant Electra Battery Materials Park
NASDAQ: ELBM | TSX.V: ELBM 28 28Responsible Sourcing
We commit-as a priority-to
We have a responsibility to
prevent the use of child labor in
respect and protect stakeholders
all its forms, whether directly
within our sphere of influence.
through our business' activities
This includes our direct influence
or indirectly through our supply
on human rights as well as
chains. By embedding child
human rights within our supply
labour prevention provisions into
chain. This is in line with the
our business conduct, we can
United Nations Guiding Principles
help ensure that our cobalt is
on Business and Human Rights.
free of such abuses.
NASDAQ: ELBM | TSX.V: ELBM 29Strong Governance and Social Responsibility
Community Relations Environmental, Social & Governance
We will be a catalyst for local community
and economic development Electra tree planting initiative
(Ontario, Canada)
We strive to provide regional
economic opportunities, local employment,
local procurement opportunities,
infrastructure availability, and tax revenues for
service implementation
Health & Safety
Our approach to health and safety is guided by
the 'zero harm' principle, where every employee Wild Basket Initiative (Plant
goes home safely each and every day. We will Study): Timiskaming First Nation
work to embed a strong safety culture into all our and Electra Team (Ontario,
operations Canada)
NASDAQ: ELBM | TSX.V: ELBM 30Market Data
Electric Vehicle Market Developments
New models expected to drive strong sales in 2022; battery shortage remains limiting factor
Global electric vehicle sales (monthly units)1
1,000,000 Global annual sales (million units)
900,000
800,000
700,000 +101%
600,000 6.4
500,000
400,000
300,000 +52%
200,000
+12% 3.2
100,000
0 2.1
1.9
2018 2019 2020 2021 2018 2019 2020 2021
1. New Energy Vehicle (NEV) sales, including Battery Electric Vehicles (BEVs) and Plug-In Hybrid Electric Vehicles (PHEVs)
Source: Electra Battery Materials, Rho Motion
NASDAQ: ELBM | TSX.V: ELBM 32Electric Vehicles | Extraordinary Growth Trajectory
EV sales to 2030 (million units) EV market penetration to 2030 (%)
Global electric vehicle sales are forecast to increase ten-fold from 3.2m Global EV market penetration rates forecast to rise from 4% in 2020 to
units in 2020 to 36.0m units in 2030. 30% by 2030.
Battery Electric Vehicles (BEV) 36.0 New Energy Vehicles (PHEV & BEV)
Plug-In Hybrid Electric Vehicles (PHEV) Internal combustion engine vehicles (ICEV)
31.2
+21% 26.8 1% 1% 1% 2% 2% 4% 6% 7% 9% 11% 14% 17% 19% 22% 26% 30%
CAGR
22.9
19.3
16.1
13.2
10.7
8.5
6.4
3.2
1.9 2.1
0.5 0.8 1.3
2015
2016
2017
2018
2019
2021
2022
2023
2024
2025
2026
2027
2028
2029
2015
2016
2017
2018
2019
2021
2022
2023
2024
2025
2026
2027
2028
2029
2020
2030
2020
2030
Source: Electra Battery Materials, BNEF
NASDAQ: ELBM | TSX.V: ELBM 33Cobalt and Nickel Demand
Higher energy density chemistries lead to stronger nickel than cobalt growth
Global: Key materials demand from NEV segment,
2018-2021 (k tonnes)1
Distribution of cell chemistries
Nickel-cobalt bearing lithium-ion batteries remain dominant chemistry
Cobalt demand growth from electric vehicle segment healthy, but outpaced by nickel
Cobalt +69%
demand growth due to higher nickel chemistries becoming more popular
37.5 Lithium-iron-phosphate (LFP) batteries will remain relevant in entry-level, short-range
+44%
vehicles but NCA/NCM chemistries will continue to dominate in the future
+26%
22.1
15.4
12.2
14% NCA
20%
30% 28%
2018 2019 2020 2021 9% 17% NCM811
3% 5%
9% 8% NCM712
+89%
Nickel 35%
24%
156.5 41% 29% NCM622
+52%
+54%
82.9 20% 15% 12% NCM523
54.6 14% 3% NCM111
35.4 7%
17% 4% 17% LFP
13% 8%
2018 2019 2020 2021 2018 2019 2020 2021
1. Based on NEV sales rather than production; actual demand numbers higher due to length of battery supply chain. Source: Electra Battery Materials, Rho Motion
34Lithium-ion Battery Market Share by Chemistry
Non-cobalt chemistries not viewed as major threat
– High-nickel NCM
batteries forecast to
remain dominant
– NCM chemistries will
continue to contain cobalt
– Innovation in nickel-cobalt
cells ongoing; energy
densities in NCM cells
will remain significantly
higher than alternative
commercial cell chemistries
Source: Benchmark Minerals, September 2021; Nickel Institute June 2020
NASDAQ: ELBM | TSX.V: ELBM 35Electra Battery Materials NASDAQ: ELBM; TSX-V: ELBM info@ElectraBMC.com +1.416.900.3891
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