The agreement brings together EVelution Energy, Entreprise Générale du Cobalt and Trafigura in a framework that could channel Congolese cobalt to the United States for processing into battery-grade cobalt sulphate or alloy-grade cobalt metal. The material is intended for sectors including electric vehicle batteries, aerospace, defence systems and other advanced manufacturing industries, where Washington is seeking to cut dependence on foreign refining capacity.
The deal is significant because Congo remains the world’s dominant source of mined cobalt, while China controls a large share of refining capacity. EVelution’s proposed plant in Yuma County, Arizona, is being positioned as the first large-scale US cobalt processing facility, designed to supply a substantial portion of domestic requirements once operational. The company has said the facility could ultimately produce up to 7,000 tonnes of contained cobalt a year, with output aimed at both commercial and strategic users.
Under the supply framework, Entreprise Générale du Cobalt is expected to source cobalt hydroxide under its state mandate, while Trafigura would provide trading, logistics and market structuring support. EGC was created to formalise and control parts of Congo’s artisanal cobalt sector, where hand-dug mining has long raised concerns over safety, child labour, traceability and working conditions.
That element gives the agreement both commercial and ethical weight. Cobalt sourced from artisanal mining can provide livelihoods for thousands of Congolese workers, but it has also exposed global manufacturers to scrutiny over labour abuses and unsafe pits. Any supply chain linked to such material will therefore be judged on whether it can deliver credible traceability, independent oversight and enforceable standards at mine sites, not merely on whether it redirects cobalt away from China-dominated processing networks.
EVelution’s Arizona project has gained momentum after a separate $850 million offtake agreement with Mitsui, under which the Japanese trading house is expected to buy a substantial share of future cobalt metal output. That agreement improved the project’s commercial profile by giving it a long-term buyer for material that can be used in superalloys, batteries and defence applications.
The company has also promoted the plant as a solar-powered and carbon-neutral processing facility, reflecting a broader shift in critical-minerals investment towards cleaner refining and lower-carbon supply chains. Its planned production is aimed at filling a gap in the US industrial base, where cobalt refining has been limited despite rising demand from battery manufacturers, military suppliers and high-performance technology producers.
Congo’s role in the arrangement comes at a time when Kinshasa is seeking greater control over its mineral wealth. Authorities have moved to regulate cobalt exports, strengthen state participation and capture more value from resources that have historically been processed abroad. A strategic cobalt reserve and export-management measures have added a policy layer to the market, as Congo looks to influence pricing and supply flows after years of volatility.
For the United States, the agreement fits a wider push to secure minerals viewed as critical to national security and the energy transition. Cobalt is used in some lithium-ion batteries, jet engine components, satellites, magnets and specialised electronics. Even as some battery makers shift towards chemistries that reduce or eliminate cobalt, the metal remains important for high-performance uses where energy density, heat resistance and durability are essential.
The proposed US-Congo supply chain also carries geopolitical implications. Western governments have been trying to build alternative routes for African minerals, including through the Lobito corridor linking Congo and Zambia to Angola’s Atlantic coast. Such infrastructure is intended to reduce bottlenecks, lower transport times and give producers access to markets beyond traditional routes dominated by established trading networks.
Commercial execution remains a key test. EVelution still needs to bring the Arizona refinery through financing, construction, commissioning and customer qualification. Large mineral-processing projects often face cost escalation, permitting challenges, technical delays and changing market conditions. Cobalt prices have also been pressured by oversupply, particularly from Congo and Indonesia, which could affect project economics unless long-term contracts provide sufficient protection.
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