Evelution Energy has announced plans to establish North America’s first cobalt processing facility in Tacna, Yuma County, Arizona. The $200 million project will produce battery-grade cobalt sulfate, a critical material for electric vehicle (EV) batteries, and is expected to significantly reduce U.S. reliance on foreign supply chains. Once operational, the facility will process 33,000 metric tons of cobalt hydroxide annually, supporting the production of approximately 470,000 EVs per year. This marks a major step in bolstering domestic critical mineral processing capabilities.
The plant will cover 138 acres, including 105 acres dedicated to solar power arrays to make the facility carbon-neutral. Construction is set to begin later this year, with operations expected to commence by 2026. Evelution Energy CEO Navaid Alam highlighted the project’s economic benefits, stating it would generate over $750 million in economic activity and create more than 3,300 direct and indirect jobs during its lifespan. The facility is located in a federally designated Opportunity Zone, providing tax incentives for investment in economically distressed areas.
Evelution Energy has partnered with Arizona Western College to offer technical training programs aimed at preparing local residents for jobs at the facility. The company also plans to sell surplus renewable energy generated on-site to local farmers and install EV charging stations as part of its broader sustainability initiatives.
The project underscores growing efforts to onshore critical mineral processing amid rising global demand for cobalt and increasing scrutiny over ethical concerns in traditional supply chains. Currently, most cobalt is mined in the Democratic Republic of Congo (DRC) and processed in China—regions criticized for human rights abuses and environmental degradation. Evelution Energy has committed to sourcing cobalt hydroxide feedstock from suppliers that comply with the Responsible Mineral Initiative and OECD guidelines for ethical sourcing.
The U.S. government has prioritized domestic production of critical minerals like cobalt through initiatives such as the Inflation Reduction Act, which offers incentives for EV battery materials sourced or processed domestically. President Donald Trump has also ordered investigations into potential tariffs on imported copper and cobalt products to encourage local production.
Evelution Energy’s facility joins a growing list of U.S.-based projects aimed at strengthening the EV supply chain. Recent announcements include South Korea-based LG Energy Solution’s $5.5 billion battery factories in Queen Creek, Arizona, and American Battery Factory’s lithium iron phosphate plant near Tucson.
