A US company planning to build the country’s first large-scale cobalt processing facility has signed an agreement that could open the door to sourcing hand-dug cobalt from the Democratic Republic of Congo (DRC).

EVelution Energy LLC is part of a memorandum of understanding signed in Madrid on Wednesday with state-owned Enterprise Générale du Cobalt and commodity trading firm Trafigura Group. The agreement sets out a framework for the long-term supply of Congolese cobalt hydroxide to the United States, Bloomberg reported.

The deal comes about five months after the US and the DRC reached a broader minerals partnership aimed at giving American investors preferential access to the country’s vast reserves of critical minerals, including cobalt, copper, lithium, and tantalum. The DRC plays a central role in Washington’s efforts to reduce reliance on China for key battery and defence materials.

The DRC is the world’s largest cobalt producer, accounting for roughly three-quarters of global output. A significant portion of supply comes from artisanal, or hand-dug, mining, which is overseen by EGC under a state monopoly system designed to improve traceability and formalisation.

Under the agreement, EVelution plans to build a processing plant in Arizona by 2029 that will produce cobalt metal and battery-grade sulfate, targeting about 40% of projected US refined cobalt demand. The company said the project would strengthen supply chain security for critical minerals used in electric vehicles, aerospace, and defence industries.

Trafigura will provide logistics and marketing support, while the partners will also explore opportunities for EGC to take a minority stake in EVelution’s refining infrastructure. Discussions are also underway to develop more local processing capacity within the DRC to capture greater value domestically.

EVelution recently signed another supply agreement with Japan’s Mitsui & Co., under which Mitsui will take the majority of its cobalt output for five years.

Source: Africabusinessinsider