The US and Democratic Republic of the Congo (DRC) have given the green light to set up a landmark responsible cobalt supply and processing chain.
DRC state cobalt producer Entreprise Générale du Cobalt (EGC) said on May 13 it had signed a memorandum of understanding with US firm EVelution Energy and global trading house, Trafigura, paving the way for launching a US commercial sulfate and cobalt metal processing project.
Construction work on the Arizona project, already under development by EVelution as the first such facility in the US, is scheduled to start next year with commissioning in 2029 ― subject to definitive agreements.
The memorandum follows the release of a damning new report from UN scientists, revealed by Batteries International, warning that mining critical minerals such as lithium and cobalt to power ‘clean energy’ systems is fuelling severe, hidden environmental and health crises.
However, EGC said the deal with the US would be key to strengthening secure, transparent, and sustainable supply chains for the US defence, aerospace, EV batteries, and advanced technology sectors.
EGC will ensure the origin and traceability of cobalt in the African nation, Trafigura will provide logistics and delivery services and EVelution will process the cobalt in Arizona.
A key element of the project will be the Lobito Atlantic Railway corridor ― connecting Kolwezi in the DRC to the port of Lobito in neighbouring Angola. The rail link was established with the support of international financing, including funding from the US, to improve the competitiveness and reliability of trade between Central Africa and international markets.
EGC chief executive Eric Kalala said: “The partnership demonstrates the DRC’s desire to integrate sustainably into the global value chains of critical minerals, while promoting local value creation, the transfer of skills and the development of a responsible sourcing model in line with international standards.”
EVelution announced on April 28 the signing of a binding, five-year offtake agreement with Mitsui & Co valued at around $850 million. Under the terms of the agreement, EVelution will supply a substantial majority (3,000 tonnes) of the cobalt metal production from its Arizona facility annually.
Research published by the US Geological Society in April this year said the country had estimated reserves of economically recoverable lithium to replace more than 300 years of imports at last year’s level, according to latest research.
Nevertheless, the US has been actively shoring up its supply chain of materials critical to the country’s energy security, including an agreement last year with Saudi Arabia.
