Trafigura and EVelution Energy are planning a 7ktpy facility for cobalt sulphate in Arizona.
Last week, Trafigura and EVelution Energy, a US EV battery materials processing company, signed an MOU to support the development of a battery-grade cobalt sulphate processing facility in Arizona, USA. Capacity is stated at 7ktpy Co while an expansion to include a nickel sulphate processing facility is also being studied. Trafigura will assist EVelution with the supply of raw materials and with marketing its production of cobalt sulphate and nickel sulphate. EVelution Energy is expected to start construction of its processing facility in late 2023.
The move is the latest in a slow return of cobalt production to the USA. In October, Jervois Global Limited officially opened its Idaho Cobalt Operations (ICO) mine site near Salmon, Idaho. ICO is the only primary cobalt mine in the USA (Lundin's Eagle mine has potential for Co by-product credits). However, the cobalt it produces will not (at least initially) remain totally in the USA. The mine will produce 2ktpy which will then be exported and converted into refined products outside the USA before ultimately being brought back into the country to serve customers.
Cobalt’s return to US shores will be helped by the Inflation Reduction Act (IRA) which offers tax credits if battery materials are produced domestically or in a free-trade partner country. China accounted for 69% of refined cobalt supply last year, which concerns Western policymakers keen to develop local and sustainable battery supply chains.