Formation Metals Inc. (TSX:FCO) reported that over the last few months, Formation has actively pursued several opportunities relating to the significant increase in long term demand for cobalt being generated by the rechargeable battery sector. For batteries used in electric vehicles and hybrid electric vehicles, cobalt is one of the key materials used.
As quoted in the press release:
The Company has been reviewing options to produce battery grade cobalt chemicals from its ICP at the planned refining Cobalt Production Facility (“CPF”) to be located on a railhead, with encouraging initial economic forecasts. The CPF was initially designed to produce high purity cobalt metal suitable for critical applications in the superalloy sector with extensive metallurgical test work confirming the viability of this production scenario. Over the past several months, internal studies indicated the CPF design can be modified to produce cobalt chemicals for the battery sector, such as cobalt sulphate. These changes could result in lower capital expenditures and operating costs for the ICP and are not expected to affect the near term mine production schedule, currently estimated to be within 9 — 14 months upon the successful conclusion of mine financing. Requests for Proposals from third party firms to vet this recent internal engineering work is currently in progress.