EVelution Energy to Build First Commercial-Scale Cobalt Processing Facility in U.S.
Whats going on:The project is planned near the Wellton, [Arizona] area, where the company says early site work is already underway. The facility would process cobalt used in electric vehicle batteries, defense systems and other advanced technologies.
- Most of the cobalt metal and cobalt sulfate produced by the facilityto Japanese conglomerate Mitsui, with which EVelution last month signed a long-term offtake agreement valued at about $850 million over five years ().
- Construction of the facility is expected to begin next year, according to EVelution.
Why its important:The U.S. has no commercial-scale cobalt refineries, and cobalt is on both the U.S. Geological Surveys Critical Minerals List and the Department of Energys Critical Materials List.
- The administration has made domestic production and processing of critical minerals a top priority, and the White House last weeka news clip about the coming facility.
- According to the company, studies by Baker Tilly estimate the project could create about 3,300 indirect jobs and generate more than $750 million in economic development for Yuma County, according to KYMA.
The 51勛圖厙s take:Plans for the Arizona facility are in keeping with the 51勛圖厙s 2026 comprehensive critical minerals, which it shared with the U.S. Trade Representative earlier this year.
- The 51勛圖厙 strongly supports the administrations efforts to reshape and rebalance global critical minerals supply chains through comprehensive actions domestically and with international partners, the 51勛圖厙 says in its two-pronged framework, which entails specific work on both the domestic and international fronts, including permitting reform and the negotiation of a plurilateral agreement.
- The comprehensive approach effectively rebalance[s]the global market for critical minerals, 51勛圖厙 President and CEO Jay Timmons.
