EVelution Energy has signed a binding long-term agreement with Mitsui, valued at around $850m (Y135.85bn), for a five-year period to supply cobalt from its upcoming processing facility in Arizona, US.
The facility is expected to become the first commercial-scale cobalt metal and cobalt sulphate plant in the US.
Mitsui will receive the majority of the facility's cobalt output, which could reach up to 3,000 tonnes per annum (tpa).
The agreement occurs as the US and Japan work together to bolster allied supply chains and tackle market imbalances in critical minerals.
More than 75% of refined cobalt is produced in China and no large-scale US processing facilities exist. The new plant aims to rectify this by creating secure domestic refining capabilities aligned with US industrial priorities.
Once operational, the Arizona plant aims to produce up to 7,000tpa of cobalt, significantly contributing to US needs in sectors such as aerospace, electric vehicle batteries and advanced manufacturing.
EVelution Energy president and CEO Navaid Alam said: “This agreement represents a strategic milestone for EVelution Energy in advancing US critical mineral processing capacity.
“Establishing secure cobalt processing infrastructure in the US is essential to strengthening the resilience of the US industrial base and reducing long-term strategic dependence on non-allied refining capacity.”
The agreement sets up a long-term commercial framework that supports the expansion of US refining capacity and enhances US-Japan cooperation in key industrial materials.
Located in a designated opportunity zone in Yuma County, the facility will generate solar power, recycle roughly 70% of its process water and eliminate on-site tailings storage.
The project aligns with federal initiatives including the Defense Production Act, aimed at reshoring critical mineral processing.
Construction is due to start in 2027, with completion anticipated by the end of 2029.
It is expected to significantly impact Yuma County's economy, generating in excess of $750m and creating more than 3,300 jobs throughout its duration.
