Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V: ELBM) (“Electra” or the “Company”) recently announced that Mr. David Allen, CPA, CA, has been appointed as Chief Financial Officer of the Company.
“David brings tremendous experience and a proven record of strategic decision-making. He will be a valuable contributor in guiding our Company forward as we complete construction of the first battery materials refinery in North America,” said CEO Trent Mell. “Starting in 2024, electric vehicles containing components from battery supply chain partners with 25% Chinese ownership will no longer qualify for the $7,500 EV tax credit. This recent development further underscores the strategic importance of our asset in the supply chain onshoring strategy. David’s prior experience in CFO roles will serve Electra well, as we finalize our financing plans for the continent’s first cobalt sulfate facility.”
A senior finance executive and business leader with over 30 years of experience, David has worked in the manufacturing, natural resources, shipping, real estate and financial services industries. He has extensive experience in CFO and senior finance roles with complex international companies and Fortune 250 Canadian companies, including TAAL, Canada Goose, Anaergia Inc., and Algoma Central Corporation. Over his career, David has demonstrated a strong ability to formulate and drive organizational strategies in a fast-paced and dynamic environment.
“This is an exciting time to join Electra as it continues to make solid progress with its battery supply chain onshoring strategy,” said Mr. Allen. “I look forward to building on the momentum and delivering on the growth strategy. Completion of the financing package for construction of the cobalt refinery will be one of our most important deliverables in the new year.”
Electra continues to make strong progress on its financing strategy to complete the construction of North America’s only battery-grade cobalt refinery. Management anticipates receiving funding from previous government commitments very early in 2024, while it advances a larger multi-stakeholder funding solution to complete the construction of its hydrometallurgical refinery north of Toronto.
The Company estimates that the current replacement cost of the refinery complex is US$200 million and that approximately US$60 million will be required to complete construction. All long-lead, custom-fabricated equipment is on-site, and the facility was operational throughout 2023 as a plant-scale demonstration plant, processing battery black mass.
Electra has an existing supply agreement with LG Energy Solution which will see LG Energy Solution buy up to 80% of production from Electra’s Ontario refinery during the first five years of operation. Demand for the remaining production exceeds Electra’s supply capabilities.
Approximately 80% of cobalt used in EVs is currently refined in China. The inclusion of this material in U.S. electric vehicles will make them ineligible for $7,500 of vehicle credits under the Inflation Reduction Act. David Allen holds a CPA and CA designation. David is also an advisor with Hive Advisory Inc., a Canadian non-traditional management consulting firm designed to develop and expand a network of skilled and experienced, certified, independent, and trained management consultants. Mr. Allen will join the company on January 4, 2024. He succeeds Peter Park, who stepped in as CFO following the departure of Craig Cunningham in June 2023 and has resigned to pursue another opportunity. Mr. Park will assist with the transition period. “Electra’s Board and Management would like to thank Mr. Park for his dedication to the Company over the past seven months and for his significant contributions over that period,” said Mr. Mell.
