EVelution Energy and Mitsui Sign $850m Cobalt Supply Deal

Why It Matters

The deal diversifies U.S. cobalt supply away from China, bolstering domestic EV battery production and national security. It also deepens strategic U.S.–Japan ties in critical minerals, a priority under the Defense Production Act.

Key Takeaways

• EVelution to supply up to 3,000 tpa cobalt to Mitsui for five years
• Arizona plant will become U.S.'s first commercial-scale cobalt metal and sulphate facility
• Project aims to produce 7,000 tpa cobalt, cutting reliance on China
• Construction starts 2027, creates 3,300 jobs and $750 million local economic boost

Pulse Analysis

The $850 million agreement between EVelution Energy and Mitsui marks a watershed moment for the U.S. critical‑minerals landscape. By establishing the nation’s first commercial‑scale cobalt metal and sulphate plant, the project directly addresses the strategic vulnerability created by China’s dominance over more than three‑quarters of refined cobalt. The Arizona facility’s projected 7,000 tonnes per annum capacity will feed the growing demand from electric‑vehicle batteries, aerospace alloys, and advanced manufacturing, while aligning with the Defense Production Act’s reshoring objectives.

Beyond raw material security, the partnership underscores a deepening U.S.–Japan alliance in the critical‑minerals sector. Both governments have signaled intent to build allied supply chains, and Mitsui’s involvement provides a credible off‑take channel that can accelerate financing and operational ramp‑up. The deal also showcases how private‑sector collaboration can dovetail with federal incentives, such as opportunity‑zone tax benefits and renewable‑energy integration, to deliver environmentally responsible mining and processing.

Economic ripple effects extend to Yuma County, where construction is expected to begin in 2027. The project forecasts more than $750 million in local spending and the creation of over 3,300 jobs, ranging from skilled engineering roles to construction labor. By recycling roughly 70 % of its process water and generating solar power on‑site, the plant aims to set a new standard for sustainable mineral processing in the United States, positioning the region as a hub for future critical‑mineral initiatives.