EVelution Energy, a U.S. critical minerals company, announced on Tuesday that it has signed a binding long-term offtake agreement with Japan's Mitsui & Co., Ltd. valued at approximately $850 million. Under the agreement, EVelution Energy will supply up to 3,000 metric tons of cobalt metal annually to Mitsui from its cobalt processing facility in Yuma County, Arizona, for a period of five years.
The facility is the first commercial-scale cobalt processing project in the United States. It will be solar-powered and has a planned production capacity of up to 7,000 metric tons per year of combined cobalt sulfate and cobalt metal. Once operational, it is expected to meet approximately 40% of U.S. cobalt demand. Construction is scheduled to begin in early 2027, with completion expected by the end of 2029. Over the project's lifecycle, it is anticipated to create more than 3,300 jobs and generate over $750 million in economic activity for Yuma County.
Cobalt is a critical raw material for electric vehicle batteries and is also widely used in advanced technologies such as jet engine superalloys, satellite systems, permanent magnets, and high-performance microchips. Currently, more than 75% of the world's refined cobalt is produced in China, while the U.S. lacks commercial-scale cobalt processing infrastructure. The signing of this agreement represents a significant step for the U.S. and Japan to strengthen cooperation on critical mineral supply chains and reduce foreign dependence.
The CEO of EVelution Energy stated that the agreement is a major milestone in advancing U.S. critical mineral processing capabilities. Establishing secure domestic cobalt processing infrastructure is crucial for enhancing the resilience of the U.S. industrial base and reducing long-term strategic dependencies.
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