ERG has signed a Memorandum of Understanding (MoU) with battery producer Mechema Chemicals, and trading house Marubeni Corporation for the refining and distribution of cobalt in Japan.

Under the MoU, ERG, Mechema and Marubeni will collaborate to develop an integrated cobalt supply chain for the Japanese market, where Mechema will conduct a feasibility study into the construction of a new cobalt refining plant located in Japan with feedstock sourced from ERG's Metalkol RTR operation in the DRC (cobalt hydroxide - 3ktpy contained cobalt). Meanwhile, Marubeni will look into the sale, distribution and marketing of cobalt sulphate in the Japanese market.

In addition, some of its material will enter North America. The company has announced two offtake agreements with EVelution Energy and Electra Battery Materials for the supply of cobalt hydroxide from its Metalkol RTR operation. Both agreements are planned to start in 2026, providing a total of 6ktpy cobalt metal contained in hydroxide (3ktpy each). The company also plans to expand its downstream processing capacity. It has invested US$800M to develop a new hydrometallurgical facility at COMIDE and is jointly developing a cobalt sulphate refinery with Thara in Saudi Arabia.

Recently, ERG appears to be focused on securing long-term integrated relations, particularly for its Metalkol operation compared to its other Cu-Co mines in the DRC. This should be viewed in the context of seemingly unsettled relations with DRC state-owned miner Gécamines, which is reported to have made a firm proposal to acquire three copper-cobalt assets from ERG earlier this year.