The Luxembourg-based Eurasian Resources Group (ERG) has finalized an agreement to provide cobalt to the US battery materials producer, EVelution Energy, over a five-year period starting in 2026, as announced in a statement by ERG.
The surge in investment within the US electric vehicle battery supply chain is largely attributed to President Joe Biden’s Inflation Reduction Act (IRA), which has injected billions of dollars in green energy tax incentives to curb the nation’s carbon emissions.
ERG outlined its commitment to deliver 3,000 metric tons of cobalt metal annually to EVelution, which is gearing up to establish a low-carbon cobalt sulphate facility in Arizona by 2024.
This facility is expected to become operational by 2026 and will rely on energy harnessed from solar panels.
ERG emphasized the current absence of commercial-scale cobalt processing facilities in the US, with more than 70% of global cobalt sulphate production originating in China. The majority of electric vehicle batteries and materials are also manufactured in China.
ERG intends to provide cobalt hydroxide, which can be efficiently converted into sulphate for use in rechargeable battery cathodes.
This cobalt source will be supplied by Metalkol, ERG’s subsidiary based in the Democratic Republic of Congo.
