First Cobalt eyes battery recycling, nickel market after Ontario refinery restart: CEO

First Cobalt is set to begin producing battery-grade cobalt sulfate at its Ontario refinery by the end of 2022, but the company is already looking at other opportunities in the electric vehicle supply chain involving nickel treatment and battery recycling at the plant, CEO Trent Mell told S&P Global Platts.

"I think there is a bit of a misnomer that the First Cobalt refinery can and will only treat cobalt," Mell said in an interview. "We have a much broader ambition that only starts with cobalt because that is the obvious hole in the supply chain outside of China."

Once the Ontario refinery is fully commissioned and operational, it will be the only North American producer of cobalt sulfate for the EV industry, with a 25,000 mt/year capacity. However, Mell said he would also like First Cobalt to "be the first movers on the nickel sulfate side, which is still a few years out."

The ability to produce both cobalt and nickel at the refinery may then allow First Cobalt to influence other industry participants to set up downstream battery operations nearby.

"We know that there are a number of chemical companies and battery companies that are in discussions across the US and Canada trying to figure out where to make their investment, and so I'm trying to lever our first mover advantage to appeal to them to set up near us, ideally with a precursor plant," Mell said.

On the battery recycling front, First Cobalt is now conducting studies on black mass processing to recover critical metals from used batteries.

"We are working on black mass and we are collaborating with four different black mass producers in Europe and North America," Mell said. "We've got quite a bit of equipment at the refinery not being reused that would be perfect for the recycling of black mass."

Mell said a scoping study for battery recycling at the plant may be available as early as August.

Cobalt needed in North American EVs

Despite advances in cobalt-free battery technologies, Mell said cobalt remains a critical component for any EV battery that offers longer driving ranges.

"With the proliferation now of electric vehicles in Europe and very soon in North America, the battery packs are getting bigger and bigger, which we want here in North America," he said. "You don't want 300 km ranges. You want 600 and 800, and that's what OEMs are talking about."

Lithium-iron-phosphate, or LFP, battery chemistries represent one of the common and economical cobalt-free options. While the quality and production of LFP technology has risen in Asia, Mell said it still falls short of the performance needed for North American demand.

"Instead of being a 100 km range battery, it might offer a 200 km range now, so they are getting better, but that's not the vehicle that the Western world wants," Mell said. "At an entry level, sure, [it works] just to drive around your neighborhood."

Still, cobalt is subject to potentially bearish factors.

Even in cobalt-bearing battery chemistries, Mell said cobalt content has dropped while nickel content has grown in recent years. Some automotive OEMs have also discussed the possibility of removing cobalt from their batteries for various reasons, he added.

However, nickel is needed in batteries offering longer driving ranges, and cobalt plays a vital role in nickel-bearing batteries, thus bolstering a demand case for the metal.

"The projections for 2030 show around 85% of battery cathodes being of the cobalt-bearing variety, and the reason you have that is because people want the nickel," Mell said.

"Nickel is what gives you energy density and range, but that amount of energy density in the battery pack also propagates a lot of heat, and one of the critical roles that cobalt plays in the battery is to manage that heat from preventing thermal runaway."

Mell said there has not yet been a proven battery technology with no nickel or cobalt that can offer the stability to support longer ranges.

"Some of the raw material purchasers that I talked to will quietly concede that they're just not there yet, and the risk reward of taking 5% of cobalt out of a cathode is just not worth it," the executive added.