EVelution Energy to Build First Commercial-Scale Cobalt Processing Facility in U.S.

What’s 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 facility will go to Japanese conglomerate Mitsui, with which EVelution last month signed a long-term offtake agreement valued at about $850 million over five years (EVelutionenergy.com).
Construction of the facility is expected to begin next year, according to EVelution.

Why it’s important: The U.S. has no commercial-scale cobalt refineries, and cobalt is on both the U.S. Geological Survey’s Critical Minerals List and the Department of Energy’s Critical Materials List.

The administration has made domestic production and processing of critical minerals a top priority, and the White House last week posted a 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 NAM’s take: Plans for the Arizona facility are in keeping with the NAM’s 2026 comprehensive critical minerals strategy, which it shared with the U.S. Trade Representative earlier this year.

“The NAM strongly supports the administration’s efforts to reshape and rebalance global critical minerals supply chains through comprehensive actions domestically and with international partners,” the NAM 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,” NAM President and CEO Jay Timmons said.