EVelution Energy has forged an alliance with commodities giant Glencore to support the development of its inaugural commercial-scale cobalt processing facility in the United States.
The collaboration is formalized through a letter of intent (LOI), outlining a long-term supply agreement for cobalt hydroxide, a crucial component in the production of cobalt sulphate utilized in electric vehicle (EV) batteries.
Pending finalization, Glencore will provide up to 7,000 tonnes of contained cobalt annually to EVelution’s facility, with the potential for expansion based on the company’s growing production capabilities.
Additionally, discussions encompass the potential offtake of the entire cobalt sulphate output, coupled with financial arrangements for hedging and working capital.
Cobalt sulphate plays a pivotal role in advancing the United States’ transition to electrify its automotive fleet and achieve a net-zero carbon economy.
With China currently dominating the global cobalt sulphate market, the absence of commercial-scale cobalt processing facilities in the US underscores the significance of EVelution Energy’s solar-powered facility in Yuma County, Arizona.
Scheduled for construction in 2024 and commissioning by the end of 2026, the facility aims to meet a substantial portion—20% to 40%—of the US’ cobalt sulphate demand upon operationalization in 2027.
The establishment of this facility is poised to bolster domestic manufacturing employment, contribute to climate change mitigation efforts, and secure a reliable supply of a critical metal for the automotive, aerospace, and defense sectors.
Moreover, the facility’s sustainable practices, including self-sufficiency in power generation, surplus clean energy provision to local agriculture, and water recycling to minimize environmental impact, underscore its commitment to eco-friendly operations.
