Evelution Energy’s cobalt processing facility in Yuma County, Arizona
Rendering of Evelution Energy’s cobalt processing facility in Welton, Arizona is shown. Construction is scheduled to begin at the end of 2025.
Provided by Evelution Energy
- Evelution Energy plans to build its first US cobalt processing facility in Yuma County by the end of 2025.
- Cobalt is extremely important for a variety of industries, including electric vehicles, aerospace and defense, and facilities could supply 30% of US demand.
The cobalt processing facility, which will boost the US supply of critical minerals, is on track to begin construction in the second half of 2025.
Once constructed, the Yuma County facility will become the only cobalt processing facility in the United States.
Cobalt is a mineral that is in high demand for use in electric vehicle batteries, aerospace products and defense technologies.
Evelution Energy is a company developing a project in Welton, Yuma County, near Rhine, California. The company plans to design and operate carbon-neutral solar power facilities that treat and recycle 70% of the water, and transport tailings and processed ore waste byproducts to local landfills, minimizing the risk of pollution on property and surrounding land.
“Our factory is essentially the best in class green facility, which is why we received unanimous approval from the Yuma County Board of Supervisors because we addressed all the concerns of our stakeholders.”
The project was unanimously approved by the Yuma County Board of Supervisors in 2023, and the company secured $200 million in long-term funding through the US Export Bank, a federal agency that provides loans, guarantees and insurance to domestic companies.
Evelution Energy is currently looking to raise the remaining funds through its federal program. This includes $64.8 million in debt financing through the EB-5 Immigrant Investor Program. This allows investors to apply for a green card by investing in US companies located in rural or rural areas of employment. The company is also considering raising $57.5 million under the qualifying opportunity zone program. It offers tax incentives for US investors investing in economically depressed regions.
Why cobalt?
Cobalt is a key mineral and is considered essential to the economy and national security, and can be vulnerable to supply chain disruptions.
“It’s absolutely important for high-thermal resistant components that can be considered for almost any military, aerospace and defense applications,” Michel Garcia said of the use of cobalt. “From inside the engine, supersonic missile coverings, stealth bombers, radar targeting systems, permanent magnets, all of which in some way contain cobalt metal.”
The founder of Evelution Energy said the company is believed to help supply US reserves for key minerals. The company said the Yuma facility could supply 30% of US demand.
About 75% of cobalt in the world It is produced by the Democratic Republic of the Congo and then sent overseas to be processed into cobalt sulfate for electric vehicle batteries. Over 70% of cobalt sulfate is refined in China, with most of the rest being processed in Finland and Indonesia.
The Chinese market has led to increased interest in cobalt processing in the US. Recent tariffs imposed on China by the White House have also benefited evolution Energy.
“They exempt from importing important minerals,” Michelle Garcia said of the Trump administration’s tariffs. “All of our imports are tax-free and prevent our competitors, Chinese, from exporting our products to the US.”
Evelution promotes its commitment to sustainable, job creation
The company emphasized its responsibility to sourise cobalt ethically. Of the total cobalt mined at the DRC, approximately 15% to 30% are produced by small-scale mining of unregulated artisans, a source of reported human rights abuses, according to a paper published by the Center for Business and Human Rights at New York University and Stern Center.
To ensure that minerals can source their minerals responsibly, the state and businesses have developed initiatives and guidelines to follow. One organization, a responsible business alliance, provides a rating in place by smelters and refiners to create responsible minerals and to source the minerals responsibly among other tools. The international organization, Economic Cooperation Agency, is also open to the public. guidance To responsibly procure minerals from high-risk areas affected by conflict.
Evelution Energy says it is working to identify and mitigate human rights violations, child labour and other issues in the cobalt supply chain, and aims to do business with businesses that follow these published guidelines and initiatives.
A survey conducted by third-party consultants estimated that the cobalt processing facility would create 3,300 direct, indirectly induced, induced jobs in Yuma, creating more than $750 million in economic activity.
“This is not only a strategically important facility for the country from a national security perspective, but it is a facility that generates a large amount of employment and economic activity,” said Michel Garcia.
Through a partnership with Arizona Western College, Evelution Energy will help develop critical mineral metallurgical treatment programs at the university’s Wellton campus near the facility. These newly trained professionals could become part of the 100 employees working at the facility. The training program is likely to start in 2027, Michel Garcia said.
Working in the factory includes security and managers, electricians, welders, mechanics and processors, Michel Garcia said.
“Our goal is to do everything we can to hire local residents and enable this opportunity to retire from nearby bases,” he said.
