US Strategic Metals (USSM) announced a partnership on Thursday with Glencore (LON: GLEN) and Chilean Cobalt (OTCQB: COBA) (C3) to explore domestic downstream processing of cobalt and copper products from C3’s La Cobaltera project in Chile.
In August, USSM secured a $400 million loan package from the Export-Import Bank of the United States. The 15-year loan will support the development of USSM’s mining and metallurgical project in Missouri, which holds the largest known cobalt reserve in North America.
The company’s Madison mine project covers 7.3 square kilometers and is estimated to contain an 18-year supply of cobalt, nickel, and copper.
Earlier this year, C3 signed a letter of intent (LOI) with Glencore for an offtake agreement and a strategic partnership to supply cobalt and copper from the La Cobaltera project in northern Chile.
This new partnership with USSM expands on the LOI, creating a three-way strategic collaboration to establish a cobalt supply chain centered in the Americas. The partnership connects C3’s Chilean project with USSM’s critical minerals processing facility in Missouri.
USSM stated that the collaboration will bolster US critical mineral supply chains. The majority, if not all, of the cobalt and copper products are expected to be shipped to the US or countries with US Free Trade Agreements.
