ERG and EVelution have signed a five-year supply agreement for cobalt hydroxide (3kty contained cobalt metal).

The agreement is expected to commence in 2026 when cobalt hydroxide will be supplied from ERG’s Metalkol’s RTR operation in the DRC to EVelution’s planned cobalt processing project in Yuma County, Arizona, USA.

In October 2022, EVelution signed an MOU with Trafigura, where parties agreed to develop a facility with a designed production capacity of 33ktpy cobalt sulphate. According to the MOU, Trafigura will also assist EVelution with the supply of raw materials and the marketing of its cobalt sulphate. EVelution expects to start construction activities in 2024 and be fully operational by 2026. Furthermore, the company plans on expanding its capacity to 66ktpy.

Recently, companies have been working towards establishing a cobalt supply chain in the USA to support domestic markets and growing EV demand. The transition has been driven by various factors including substantial financial backing from the US government for greenfield projects, and the USA’s Inflation Reduction Act (IRA) which offers substantial green energy tax credits. Notably, Jervois Global secured a US$15M grant from the United States Department of Defense (DoD) in June 2023 to continue developing its ICO project and has since commenced a BFS for its US cobalt refinery with a production capacity of 6ktpy cobalt sulphate.

The partnership between the ERG and EVelution is the latest sign of more US-DRC cobalt cooperation, following Buenassa's collaboration with Washington-based financial consulting firm Delphos International to secure additional funding for a copper-cobalt plant in the DRC.