Electra Upsizes Offering to Fuel North American Battery Ambitions

TORONTO, ON – February 20, 2026 – Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V: ELBM) announced today it is significantly expanding its financial toolkit, upsizing an at-the-market (ATM) stock offering to US$25 million. The move provides the company with enhanced flexibility as it races to commission North America’s only battery-grade cobalt sulfate refinery, a critical component in the continent's urgent push to build a domestic electric vehicle (EV) supply chain independent of foreign control.

The offering allows Electra to sell common shares periodically on the Nasdaq exchange through its agent, H.C. Wainwright & Co., LLC. This capital injection is earmarked for working capital and general corporate purposes, with a specific focus on bringing the company's flagship refinery in Ontario, Canada, across the finish line.

A Flexible Financial Strategy for Growth

Electra’s decision to expand its ATM program is a calculated financial maneuver designed for a company in a capital-intensive growth phase. Unlike traditional, large-scale equity raises that can heavily discount a company's stock price, an ATM offering allows for the gradual sale of shares at prevailing market prices. This provides a flexible spigot for capital, enabling management to raise funds as needed while navigating volatile market conditions.

The US$25 million program includes US$5.5 million in shares already sold under a previous agreement. While this financing method provides crucial runway, it also carries the potential for dilution for existing shareholders. Based on regulatory filings, the issuance could increase the number of outstanding shares from approximately 103 million to over 127 million if the offering is fully utilized at recent price levels. Following the announcement, the company's shares saw a modest dip of around 2% in after-hours trading, suggesting the market is weighing the strategic necessity of the funding against the potential dilution.

Analysts are watching closely. H.C. Wainwright, the offering's agent, maintains a "Buy" rating on the stock, albeit with a recently lowered price target. This reflects a belief in the company’s long-term strategy, tempered by the near-term financial realities of bringing a major industrial project to life. The company's financial reports show it is operating at a net loss, a common scenario for development-stage firms, but the new funding is intended to bridge the gap to revenue generation.

From Funding to Function: The Ontario Refinery

The ultimate goal of this capital raise is the successful commissioning of Electra’s cobalt sulfate refinery in Temiskaming Shores, Ontario. This facility is not just another industrial project; it is poised to become a lynchpin in North America's battery ecosystem. The plant, a brownfield redevelopment of a former hydrometallurgical facility, is designed to produce 6,500 tonnes of battery-grade cobalt sulfate annually—enough to supply batteries for over one million electric vehicles each year.

Construction is visibly advancing. Recent milestones include the completion of exterior pipe racks connecting key processing buildings. On-site work is now focused on installing tanks and other core infrastructure, with most of the long-lead equipment already secured. The company is targeting full-scale construction to intensify throughout 2026, aiming for cold commissioning late in the year and the commencement of commercial production in 2027.

Underpinning the project's viability is a crucial five-year offtake agreement with South Korean battery giant LG Energy Solution, which secures a buyer for 60-80% of the refinery's initial output. This agreement provides a significant de-risking factor, demonstrating market confidence in Electra's ability to produce high-quality, battery-grade material.

Securing a Foothold in the Global Critical Minerals Race

Electra's project is unfolding against a backdrop of intense geopolitical competition for the resources that power the green economy. Currently, North America is perilously dependent on foreign nations for processed battery materials. China, for instance, controls an estimated 94% of the world's cobalt refining capacity, giving it immense leverage over the global EV market.

Recognizing this vulnerability, both the U.S. and Canadian governments have launched ambitious strategies and allocated billions of dollars to foster domestic supply chains. Canada's Critical Minerals Strategy and the U.S. Inflation Reduction Act (IRA) provide a powerful combination of grants, loans, and tax credits designed to incentivize projects exactly like Electra's. The company has already successfully secured approximately US$82 million in project financing, a package that includes US$48 million in non-dilutive government support from federal and provincial bodies in both countries.

This government backing underscores the strategic importance placed on Electra's success. The company represents a tangible step toward creating a transparent, traceable, and ethically sourced supply chain for critical minerals. By providing a reliable "ex-China" source of cobalt sulfate, the Ontario refinery will help North American automakers and battery manufacturers meet the sourcing requirements stipulated in legislation like the IRA, which are designed to onshore manufacturing and reduce reliance on geopolitical rivals.

As Electra moves forward with its upsized offering, it is not merely raising capital; it is solidifying its role as a key enabler of North America's energy transition. The funds will provide the necessary cushion to navigate the final, complex stages of plant commissioning and ramp-up, bringing the continent one step closer to achieving a secure and independent battery-powered future.