TORONTO, Feb. 17, 2021 /CNW/ - First Cobalt Corp.
(TSXV: FCC) (OTCQX: FTSSF) (the "Company") today announced that it
has begun a study of black mass material from recycled batteries as
a supplemental source of feed for its hydrometallurgical refinery
located north of Toronto. The
Company believes the Refinery could recover cobalt, nickel, copper
and potentially lithium and manganese, in addition to planned
cobalt production from primary feed. Discussions are underway with
several producers of black mass.
First Cobalt is currently in preconstruction of a refinery
expansion project that will result in annual production of 5,000
tonnes of cobalt contained in a battery-grade cobalt sulfate
starting in Q4 2022. The Refinery previously recovered nickel,
copper and cobalt and this study will leverage these processes and
existing infrastructure. Incremental capital costs to modify the
flow sheet to treat black mass and recover other battery raw
materials are expected to be substantially lower than a greenfield
project.
Highlights
- First Cobalt's battery recycling circuit would be integrated
into the Company's primary cobalt sulfate refinery and operated by
the same team. Additional capital expenditure is expected to be
modest under a base case scenario.
- The Company's hydrometallurgical refinery is expected to
provide higher yields at a lower cost and at significantly lower
energy intensity, compared to traditional pyrometallurgical
facilities.
- First Cobalt's refinery is 100% powered by clean, hydroelectric
power from Ontario Power Generation, resulting in nearly zero
greenhouse gas (GHG) emissions.
- Closed loop recycling of lithium-ion batteries will serve the
electric vehicle market in North
America and Europe and in
the short term will benefit from higher availability of cobalt-rich
consumer electronics.
Trent Mell, President & Chief
Executive Officer, commented:
"This initiative advances our vision of producing the world's
most sustainable cobalt while broadening the potential revenue
streams to include other battery materials. Automakers are looking
for a closed loop supply chain for their batteries and the proposed
recycling process at the First Cobalt Refinery presents a
compelling solution to move to a circular model for recycling
end-of-life batteries and battery manufacturing scrap.
"Pursuing this project in tandem with the current cobalt
sulfate production circuit would yield much lower capital and
operating costs than a standalone greenfield recycling plant. Our
hydrometallurgical process is expected to be more efficient and
better for the environment than many of the established recycling
processes."
Lithium-ion Battery Recycling
End-of-life lithium-ion batteries are initially discharged
before being disassembled. Battery cells are then typically subject
to a mechanical process involving crushing, sorting and sieving to
produce a powder substance referred to as "black mass". Black mass
contains a variety of valuable metals including cobalt, nickel,
copper, lithium, manganese, aluminum and graphite. Outside
China, the predominant means of
recovering metal from black mass is through an energy-intensive
pyrometallurgical process that involves calcining, roasting and
smelting.
Metal recovery from black mass through a hydrometallurgical
process such as that owned by First Cobalt, whereby metals are
dissolved and separated, is more efficient and environmentally
friendlier than a pyrometallurgical process. The
hydrometallurgical process is expected to become the preferred
approach to recycling as electric vehicle penetration rates
continue to climb.
Scope of Work
The scoping study will initially consider two scenarios. Under a
base case scenario, Ausenco Engineering Canada Inc. will consider
existing infrastructure as well as equipment currently installed at
the Refinery. Prior to 2015, the existing flow sheet could process
4,200 tonnes of feed per annum to produce cobalt carbonate, nickel
carbonate and a copper intermediate product. This scenario will
utilize existing infrastructure and equipment that is not required
for the cobalt sulfate expansion process that is currently
underway.
The second phase of the study will consider additional equipment
required to take all material streams to a battery-grade product.
Under this scenario, opportunities for lithium, manganese, aluminum
and graphite as revenue streams will be explored. In each phase,
the Company will seek to utilize existing equipment and
infrastructure to the greatest extent possible.
SGS Lakefield will conduct
metallurgical test work on black mass feed material. Preferred feed
material are cathodes from lithium cobalt oxide (LCO), nickel
manganese cobalt (NMC) and nickel cobalt aluminum (NCA)
batteries.
ESG Commitment
Batteries have an essential role in the world's transition to
renewable energy. However, IHS Markit forecasts that more than 1.2
million tonnes of batteries will reach end of life in 2025,
increasing to 3.5 million tonnes in 2030. Recycling processes to
close the loop and improve the environmental profile of batteries
even further will also provide a steady, domestic source of
critical minerals that are projected to be in short supply in the
future.
As electric vehicle sales continue to increase, thousands of
tonnes of end-of-life batteries could end up in landfill sites or
shipped to pyrometallurgical refineries. The opportunity that First
Cobalt is pursuing would offer a low cost, high yield, and
environmentally friendly recycling solution for end-of-life
batteries.
First Cobalt is committed to producing the world's most
sustainable cobalt and we will apply these same rigorous principles
to all our operations. The mines providing the Refinery's cobalt
hydroxide feedstock and the Refinery itself are powered by
hydroelectric energy, which generates emissions that are 50 times
lower than natural gas, 70 times lower than coal and 5 times lower
than solar (source: Hydro Quebec).
Closed-loop solutions for the recycling of cathode materials
used in lithium-ion batteries is good for the environment and is
good public policy. By 2027, the European Union will require that
all batteries have recycled content declarations, with mandatory
recycled content in 2035 of 20% cobalt, 10% lithium and 12%
nickel. It is expected that North
America will follow suit and impose regulations on battery
recycling.
About the First Cobalt Refinery
The First Cobalt Refinery is a hydrometallurgical cobalt
refinery located north of Toronto,
in the community of Temiskaming Shores. The facility was permitted
in 1996 and operated intermittently until 2015, producing cobalt,
nickel and silver products. In May
2020, the Company completed an engineering study that
confirmed the Refinery's suitability to treat cobalt hydroxide at
an expanded throughput to produce battery grade cobalt sulfate.
Feed arrangements have been concluded with Glencore AG and IXM SA,
a fully owned subsidiary of CMOC. In December 2020, the Government of Canada and the Government of Ontario announced a joint C$10 million investment, which will help
accelerate the commissioning and expansion. Once operational, the
Refinery will produce 5,000 tonnes of cobalt per year and will be
North America's only producer of
cobalt sulfate for the electric vehicle market.
Long Term Incentive Grants
The Company has issued certain directors and employees 30,864
Deferred Share Units (DSUs), 148,456 Restricted Share Units (RSUs)
and options granting the rights to purchase 100,000 common shares
of First Cobalt exercisable at yesterday's closing price of
$0.405 for a period of four years.
The options will vest over a two-year period. The grants of
long-term incentives remain subject to the approval of the TSX
Venture Exchange.
About First Cobalt
First Cobalt owns North
America's only permitted primary cobalt refinery. Cobalt
refining is a critical component to the development and
manufacturing of batteries for electric vehicles and forms a
foundational piece of the next generation of the North American
auto sector and other electrified consumer and industrial
applications. First Cobalt owns the Iron Creek cobalt project in
Idaho, USA and controls
significant silver and cobalt assets in the Canadian Cobalt Camp,
including more than 50 past producing mines.
On behalf of First Cobalt Corp.
Trent Mell
President & Chief Executive Officer
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking
Statements
This news release may contain forward-looking statements and
forward-looking information (together, "forward-looking
statements") within the meaning of applicable securities laws and
the United States Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical facts, are
forward-looking statements. Generally, forward-looking statements
can be identified by the use of terminology such as "plans",
"expects', "estimates", "intends", "anticipates", "believes" or
variations of such words, or statements that certain actions,
events or results "may", "could", "would", "might", "occur" or "be
achieved". Forward-looking statements involve risks, uncertainties
and other factors that could cause actual results, performance and
opportunities to differ materially from those implied by such
forward-looking statements. Factors that could cause actual results
to differ materially from these forward-looking statements are set
forth in the management discussion and analysis and other
disclosures of risk factors for First Cobalt, filed on SEDAR at
www.sedar.com. Although First Cobalt believes that the information
and assumptions used in preparing the forward-looking statements
are reasonable, undue reliance should not be placed on these
statements, which only apply as of the date of this news release,
and no assurance can be given that such events will occur in the
disclosed times frames or at all. Except where required by
applicable law, First Cobalt disclaims any intention or obligation
to update or revise any forward-looking statement, whether as a
result of new information, future events or otherwise.
SOURCE First Cobalt Corp.