Glencore, a prominent global diversified natural resource company and leading cobalt producer, has joined forces with EVelution Energy, a U.S.-based EV battery materials processing company, in a significant move towards supporting the development of EVelution’s cobalt processing facility in the United States.
The collaboration is aimed at addressing the critical need for cobalt sulfate, a vital material for EV batteries, aligning with America’s initiative to electrify its automotive fleet and transition to a net-zero economy.
With currently no commercial-scale cobalt processing facilities in the U.S., more than 70 percent of the world’s cobalt sulfate is produced in China. EVelution Energy is pioneering the establishment of the first solar-powered cobalt processing facility in the United States, situated in Yuma County, Arizona. Upon completion in 2027, EVelution Energy’s facility is anticipated to supply 20 percent-40 percent of the estimated U.S. cobalt sulfate demand.
As part of the agreement, Glencore and EVelution are finalizing terms for a long-term supply agreement to fulfill EVelution’s remaining cobalt hydroxide feedstock requirements, potentially up to 7,000 metric tons of contained cobalt annually, with scope for further supply expansion as EVelution’s cobalt production facility grows.
Additionally, Glencore and EVelution have outlined discussions regarding potential offtake agreements for the full production of cobalt sulfate from the facility, along with hedging and working capital solutions.
Navaid Alam, president of EVelution Energy, expressed satisfaction at Glencore’s interest in becoming a major feedstock supplier, deeming the agreement a significant milestone for the company’s advancement and the establishment of a domestic EV battery material supply chain.
Ash Lazenby, U.S. Cobalt marketing at Glencore, expressed anticipation for the collaboration, highlighting Glencore’s commitment to providing essential raw materials sourced from its leading cobalt hydroxide production facilities in the DRC.
The solar-powered cobalt processing plant by EVelution Energy is poised to create manufacturing jobs, diminish the U.S.’s dependence on foreign countries for EV battery materials, combat climate change, and offer a domestic source for crucial metals needed by the U.S. automotive, aerospace, and defense sectors.
Scheduled to commence construction in 2024, with commissioning expected by the end of 2026, the facility not only aims to generate its own power but also intends to supply surplus clean electricity to nearby farmers while recycling approximately 70 percent of its water consumption, thus mitigating its environmental footprint.
For more information visit www.evelutionenergy.com
