Eurasian Resources Group (ERG), a leading diversified natural resources group headquartered in Luxembourg, signed a preliminary five-year sales agreement with EVelution Energy (EVelution), the U.S. electric vehicle battery materials processing company. The agreement to supply ERG’s cobalt hydroxide to the EVelution’s cobalt processing facility in the US, the construction of which is expected to start in 2024, should account for almost half of the company’s annual feedstock requirements.
The announcement was made on the sidelines of LME Week in London, the annual gathering of the global metals community. The collaboration between ERG and EVelution is set to energise the US minerals sector, and further the sustainability agenda by creating more manufacturing jobs in the US, as well as helping to combat climate change on a global scale.
Cooperation between the two companies also supports the development of the US-based cobalt mineral processing industry. Currently, there are no cobalt processing facilities, on a commercial scale, in the US, with over 70% of the global production of cobalt sulphate based in China.
Benedikt Sobotka, CEO of ERG, said: “We are very pleased at ERG that the Group has entered into this agreement to supply EVelution Energy with cobalt hydroxide. This collaboration supports the green energy transition and should also help to bring a much-needed cobalt refining capacity to the US market.”
“We are very happy to have ERG as our long-term supply partner,” said Navaid Alam, President and CEO of EVelution Energy. “This agreement, as well as those we are negotiating with other supply partners, ensures that we will have the cobalt hydroxide feedstock that we need to satisfy our clients’ growing demand for domestically produced IRA qualified carbon-neutral EV battery grade cobalt sulphate in North America.”
ERG’s cobalt hydroxide will be supplied by Metalkol, the Group’s DRC-based flagship operation, which is one of the world’s top cobalt producers.
Construction of the EVelution’s facility is expected to be operational by 2026. The company has reported that it will generate its own power through solar panels, and it will deliver surplus clean electricity to nearby farmers, while also recycling approximately 70% of the water it uses.