Eurasian Resources Group (ERG), a leading diversified group in the extraction and processing of natural resources, has entered into a preliminary five-year agreement with EVelution Energy (EVelution), an American company specializing in battery material processing for electric vehicles. The agreement entails the supply of cobalt hydroxide produced by ERG to EVelution’s cobalt processing plant in the United States, which the company plans to begin constructing in 2024. ERG’s cobalt will satisfy nearly half of EVelution’s annual raw material requirements.
The announcement of the agreement was made during the London Metal Week, an annual conference attended by representatives of the global metallurgical industry. The collaboration between ERG and EVelution will provide an impetus for the development of the mineral production industry in the United States. It will also contribute to sustainable development goals by creating new jobs in the manufacturing sector and supporting global climate change mitigation efforts.
Furthermore, the partnership between the two companies marks a significant milestone in the development of cobalt processing capabilities in the United States. Currently, there are no industrial-scale cobalt processing facilities in the country, while over 70% of global cobalt sulfate production is concentrated in China.
Benedikt Sobotka, CEO of ERG, emphasized, “We are pleased to reach this agreement for the supply of cobalt hydroxide with EVelution Energy. This collaboration supports the transition to clean energy and will help meet the pressing needs of the American market in developing cobalt processing capacity.”
Navaid Alam, President and CEO of EVelution Energy, stated, “We are delighted to establish a long-term partnership with ERG for the supply of cobalt hydroxide. This agreement, along with potential partnerships we are exploring with other suppliers, will ensure a sustainable cobalt hydroxide supply to meet the growing demand of our customers in North America for domestically produced zero-carbon cobalt sulfate, in compliance with the Inflation Reduction Act (IRA).” Cobalt sulfate is a material required for the production of electric vehicle batteries.
The cobalt hydroxide will be supplied from ERG’s flagship facility, Metalkol, located in the Democratic Republic of Congo, which is one of the world’s leading cobalt producers.
The EVelution plant is scheduled to commence operations by 2026. The company has announced plans to install its own solar battery-based power source at the facility, with surplus clean electricity being supplied to local farmers. Additionally, the plant will reuse approximately 70% of the water it consumes.