EVelution Energy Signs LOI to Supply Substantially All of Its U.S. Cobalt Production to Mitsui

In a groundbreaking development, EVelution Energy, LLC (“EVelution”), a U.S. critical minerals processing company, has signed a letter of intent with Mitsui & Co., Ltd. (“Mitsui”; Head Office: Tokyo; President and CEO: Kenichi), to supply the Japanese metal trader with substantially all of the cobalt metal and cobalt sulfate production from its upcoming cobalt processing facility in Yuma County, Arizona.

This transformational project, which is expected to start construction at the end of 2025 and be fully operational in 2027, addresses the dependency of the United States to Chinese dominated critical minerals supply chains. When fully operational, this American cobalt processing facility is expected to be able to domestically produce up to 40% of estimated U.S. cobalt demand, thereby substantially domesticating and de-risking America’s cobalt supply chain.

Cobalt is a critical mineral that is essential for aerospace alloys (including samarium cobalt alloys for rare earth magnets) and critical defense technologies, as well as high-performance lithium-ion batteries. Currently, more than 75% of the world’s refined cobalt is produced in China, while there are no commercial-scale cobalt processing facilities in the U.S.

Under the terms of the LOI, Mitsui, one of the world’s leading metal traders, and EVelution Energy, have agreed to enter into negotiations for the long-term supply of (i) at least 19,000 metric tons of EV battery-grade cobalt sulfate per year, and (ii) at least 3,000 metric tons of alloy-grade cobalt metal per year. 

“We are very excited to partner with Mitsui, one of the leading metal traders in the world. EVelution Energy expects to be the first American commercial-scale producer of refined alloy grade cobalt metal and battery grade cobalt sulfate. With the substantial increase in demand for cobalt from the U.S. defense department and allied aerospace and defense industries, as well as the EV battery industry, it is imperative that the United States join hands with its allies to rapidly develop domestic cobalt processing capabilities to supply its growing defense, aerospace and EV industrial base, in a manner fully independent from China,” said Navaid Alam, President of EVelution Energy.”

Located in a “qualified opportunity zone” in Yuma County, Arizona, EVelution Energy’s solar-powered cobalt processing plant will (i) domesticate a strategically important piece of America’s critical minerals supply chain, (ii) expand the capabilities and resilience of the U.S. defense, aerospace and automotive industrial base, (iii) enhance national security and economic self-sufficiency by de-risking America’s cobalt supply chain from China, and (iv) create new well-paid stable jobs and generate substantial economic growth in an underserved and economically disadvantaged rural area in the State of Arizona. 

EVelution Energy’s cobalt processing facility is expected to have a substantial impact on the local economy, generating more than $750 million in economic activity, and creating more than 3,300 direct, indirect and induced new jobs during the life of the project. Moreover, EVelution Energy expects to jointly develop apprenticeship/training programs to train its local workforce at the Wellton Campus of the Arizona Western College.

The Yuma County cobalt processing facility will generate its own solar power and deliver surplus electricity to nearby farmers. It will also recycle approximately 70% of the water it uses and have no tailings, thereby minimizing its impact on the surrounding environment. 

Mitsui & Co. | https://www.mitsui.com/jp/en/

EVelution Energy | www.evelutionenergy.com