MADRID, May 14 – EVelution Energy LLC signed a memorandum of understanding with Entreprise Générale du Cobalt (EGC) and Trafigura Group to establish a framework for long-term cobalt supplies from the Democratic Republic of Congo to the United States.
The agreement, signed in Madrid on Wednesday, is aimed at supporting US efforts to secure critical mineral supply chains outside China as demand for battery materials accelerates.
Under the arrangement, cobalt hydroxide sourced from Congo would be supplied to EVelution Energy’s planned refining facility in Arizona, where the company intends to produce battery-grade cobalt sulfate and cobalt metal for the electric vehicle, aerospace and defense industries.
EVelution aims to complete the Arizona processing facility by 2029 and has said the plant could eventually meet about 40% of projected US demand for refined cobalt.
“The arrangement is expected, subject to definitive agreements, to support EVelution Energy’s production of up to approximately 40% of projected U.S. cobalt demand,” commodity trader Trafigura said in a statement.
The deal follows a broader minerals partnership signed between the United States and Congo five months ago that gives American investors preferential access to strategic Congolese mineral reserves including copper, cobalt, lithium and tantalum.
Congo remains the world’s largest cobalt producer, accounting for roughly three-quarters of global supply before export restrictions were introduced last year.
Entreprise Générale du Cobalt, commonly known as EGC, holds a monopoly over the purchase and sale of artisanal cobalt production in Congo, including hand-dug material widely used in electric vehicle battery manufacturing.
Most Congolese cobalt production is controlled by major mining companies including CMOC Group Ltd., Glencore Plc and Eurasian Resources Group.
Although EGC only began operations late last year, the company is expected to become an increasingly important supplier following the government’s introduction of cobalt export quotas.
The state-owned company has been allocated export allowances of 5,640 tons annually for 2026 and 2027, representing roughly 6% of Congo’s permitted cobalt exports.
Trafigura will provide logistics and marketing services under the proposed framework, while the parties are also exploring opportunities for EGC to acquire a minority stake in EVelution or its refining infrastructure.
The companies said they will continue discussions toward definitive long-term commercial agreements over the coming months.
