EVelution Energy has secured a binding long-term offtake agreement well worth about $850 million with Japanese trading large Mitsui, noting a primary step closer to reshaping global cobalt supply chains and reinforcing US access to critical minerals.
The five-year agreement will see Mitsui bought a large majority of cobalt output from EVelution’s planned processing facility in Yuma County, Arizona—up to 3,000 metric tons (contained cobalt) yearly once operational.
“This agreement shows a strategic milestone for EVelution Energy in advancing U.S. critical mineral processing capacity,” stated Navaid Alam, President & CEO of EVelution Energy.
“Establishing secure cobalt procedure infrastructure in the US is important to reinforcing the resilience of the U.S. Industrial base and lowering long-term period strategic relines on non-allied refining capacity.”
The deal lands at a pivotal moment for worldwide supply chains. More than 75% of refined cobalt is recently processed in China, at the same time as the US has no commercial-scale domestic cobalt refining capacity. EVelution’s venture is designed to close that gap.
The deliberate Yuma facility is anticipated to produce up to 7,000 metric tons yearly of cobalt sulfate and cobalt metal at full capacity, offering industries ranging from EV batteries and aerospace to defense systems, semiconductors, and advanced production.
Cobalt stays a essential material in jet engine superalloys, satellite structures, permanent magnets, and high-overall performance electronics—making supply security a developing geopolitical priority.
The facility, located in a federally detailed rural opportunity zone, is scheduled as a partially self-powered industrial site using of solar energy, with 70% water recycling and no on-site tailings storage. It aligns with U.S. policy efforts beneath the Defense Production Act to rebuild domestic crucial minerals capacity.
Construction is anticipated to start in early 2027, with of entirety focused for 2029. The venture is projected to create more than $750 million in local economic pastime and create over 3,300 jobs in the course of its development and operational phases.
