Trafigura, Entreprise Générale du Cobalt (EGC) and EVelution Energy have signed a memorandum of understanding (MoU) to create a direct cobalt supply chain between the Democratic Republic of Congo (DRC) and the US.
This arrangement aims to meet a significant portion of US cobalt demand, particularly for the aerospace, defence and electric vehicle (EV) industries, potentially addressing around 40% of national requirements, pending definitive agreements.
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The initiative follows the December 2025 US-DRC critical minerals agreement aimed at enhancing supply chain security.
EVelution Energy’s facility in Arizona will process materials into battery-grade cobalt sulphate and alloy-grade metal.
EGC will supply cobalt hydroxide sourced under its state mandate in the DRC, while Trafigura will manage logistics and marketing.
The parties plan to assess local refining capabilities in the DRC to boost economic development and explore potential equity participation by EGC in EVelution’s infrastructure.
Additionally, technical training programmes are envisaged for EGC teams to bolster Congolese capacity in cobalt refining.
The companies will utilise the Lobito Atlantic Railway, reducing inland transit from Kolwezi to an African port.
This railway, supported by significant US and South African investment, aims to lower logistics costs and improve reliability, enhancing US-based refining supply chain competitiveness.
EGC, a company governed by Congolese law with a 2019 mandate, will focus on responsible cobalt sourcing and traceability, aligning with international guidelines.
EGC CEO Eric Kalala said: “This partnership marks a structural milestone for the DRC. It is in line with the strategic agreement between the US and the DRC and illustrates the effective implementation of the commitments made by the DRC.
“It not only secures a high-value outlet for artisanal production but also underscores an important skills transfer, based on American industrial expertise, to develop local processing capabilities.”
The initiative supports US goals to strengthen critical mineral supply chains, reindustrialise domestic manufacturing and maintain strategic competitiveness.
Construction of EVelution Energy’s facility is set to start in early 2027, with completion expected towards the end of 2029.
The parties involved aim to finalise detailed commercial agreements in the coming months.
Earlier this month, Trafigura signed a term sheet with the Egyptian Aluminium Company and Metallurgical Industries Holding to establish a new primary aluminium smelter.
