EVelution Energy has signed a letter of intent with Japan-based Mitsui to supply nearly all of the cobalt metal and cobalt sulfate production from its planned processing facility in Yuma County, Arizona. Construction on the project is expected to begin by the end of 2025, with full operations targeted for 2027.
Once operational, the plant is expected to meet up to 40% of U.S. cobalt demand, reducing reliance on Chinese supply chains. Currently, over 75% of the world’s refined cobalt is produced in China, and the United States has no commercial-scale domestic processing facilities.
The agreement outlines plans for EVelution to supply Mitsui with at least 19,000 metric tons of EV battery-grade cobalt sulfate and 3,000 metric tons of alloy-grade cobalt metal annually. Cobalt is a key material for aerospace alloys, critical defense technologies, and lithium-ion batteries.
EVelution’s Arizona facility will be solar-powered, recycling about 70% of the water it uses and producing no tailings. The project is located in a designated opportunity zone and is expected to generate more than $750 million in economic activity, creating over 3,300 jobs during its lifespan.
Training programs for the local workforce are also planned, in collaboration with Arizona Western College’s Wellton Campus. In addition to processing cobalt, the facility will supply surplus solar-generated electricity to nearby agricultural operations.
