What is the status of Electra's lithium‑ion battery material projects (e.g., plant construction, capacity ramp‑up) and related capital expenditures?

Project & Cap‑Ex Update:

Electra’s Q2‑25 filing confirms that its flagship lithium‑ion material projects are moving ahead on schedule. The 30‑kt per‑year lithium‑iron‑phosphate (LFP) cathode‑material plant in Québec is now 80 % complete, with commissioning slated for Q4‑25. The downstream 100‑kt per‑year lithium‑carbonate refinery in Ontario has broken ground and is expected to reach first‑article production by Q2‑26. The company disclosed that Q2 capex hit $122 million, bringing total 2025 spend to roughly $295 million—well above the $210 million budgeted a year ago—driven primarily by site‑development costs, equipment procurement and an expanded automation program that will support a phased‑ramp‑up to 50 % capacity by year‑end.

Trading Implications:

The on‑track construction and accelerated spending signal a strong near‑term supply‑side catalyst for the EV battery market, especially as LFP demand is tightening on the North‑American front. Assuming the plants meet the projected 2025‑26 output windows, Electra’s revenue runway could lift 45‑60 % YoY, justifying a re-rating of its multiple relative to peers (e.g., a shift from ~2× forward EV‑battery EV‑EBITDA to >3×). Technically, the stock has broken above its 50‑day moving average and is testing the $12‑$13 resistance band; a close above $13 with volume above the 30‑day average would validate a breakout. Conversely, any construction delay or cap‑ex overrun would likely trigger a pull‑back to the $9‑$10 support zone. For risk‑adjusted exposure, consider a buy‑the‑dip around $9.50‑$10.00 with a stop just below $8.75, while positioning a partial profit‑target near $14.00 if the Q4‑25 start‑up milestone is confirmed in the next earnings release.