EVelution Energy has secured a binding long-term offtake agreement worth approximately $850 million with Japanese trading giant Mitsui, marking a major step toward reshaping global cobalt supply chains and strengthening US access to critical minerals.
The five-year agreement will see Mitsui purchase a substantial majority of cobalt output from EVelution’s planned processing facility in Yuma County, Arizona—up to 3,000 metric tons (contained cobalt) annually once operational.
“This agreement represents a strategic milestone for EVelution Energy in advancing U.S. critical mineral processing capacity,” said Navaid Alam, President & CEO of EVelution Energy.
“Establishing secure cobalt processing infrastructure in the United States is essential to strengthening the resilience of the U.S. industrial base and reducing long-term strategic dependence on non-allied refining capacity.”
The deal lands at a pivotal moment for global supply chains. More than 75% of refined cobalt is currently processed in China, while the United States has no commercial-scale domestic cobalt refining capacity. EVelution’s project is designed to close that gap.
The planned Yuma facility is expected to produce up to 7,000 metric tons annually of cobalt sulfate and cobalt metal at full capacity, supplying industries ranging from EV batteries and aerospace to defense systems, semiconductors, and advanced manufacturing.
Cobalt remains a critical material in jet engine superalloys, satellite systems, permanent magnets, and high-performance electronics—making supply security a growing geopolitical priority.
The facility, located in a federally designated rural opportunity zone, is planned as a partially self-powered industrial site using solar energy, with 70% water recycling and no on-site tailings storage. It aligns with U.S. policy efforts under the Defense Production Act to rebuild domestic critical minerals capacity.
Construction is expected to begin in early 2027, with completion targeted for 2029. The project is projected to generate more than $750 million in local economic activity and create over 3,300 jobs during its development and operational phases.
