EGC, EVelution Energy and Trafigura MOU to supply DRC cobalt to U.S.
- MOU aims to supply Congolese cobalt hydroxide to the U.S., supporting up to approximately 40% of projected U.S. cobalt demand for EVelution Energy.
- EVelution’s Yuma County, Arizona facility will be the first commercial-scale cobalt refinery in the U.S., producing battery-grade cobalt sulfate and alloy-grade cobalt metal for aerospace, defense and EV markets.
- Parties plan to leverage the Lobito Atlantic Railway — a 1,300 km rail line with a 450 km extension to Kolwezi — which has received $753 million in financing and cuts inland transit to about seven days.
- Construction of the Arizona refinery is expected to start in early 2027 with completion targeted by end of 2029; parties will negotiate definitive long-term commercial agreements.
Deal overview
Entreprise Générale du Cobalt (EGC), EVelution Energy and Trafigura signed a tripartite MOU to establish a framework for long-term supply of Congolese cobalt hydroxide to the United States. Subject to definitive agreements, the arrangement is expected to support EVelution Energy’s production of up to approximately 40% of projected U.S. cobalt demand and builds on the December 2025 U.S.–DRC strategic critical minerals agreement.
Commercial structure
Under the planned structure, EGC will originate cobalt hydroxide under its state mandate, Trafigura will provide supply chain, logistics and marketing services, and EVelution Energy will process the material at its Arizona facility into battery-grade cobalt sulfate and/or alloy-grade cobalt metal for U.S. aerospace, defense and EV battery industries. The integrated model is designed to derisk cross-border flows and support long-term, bankable feedstock supply.
Local development and capacity building
The parties intend to explore support for developing local cobalt refining capacity in the DRC, opportunities for EGC minority equity participation in EVelution or its refining infrastructure, and technical training programs to strengthen Congolese refining capacities and value creation in-country.
Logistics and responsible sourcing
The partners expect to leverage the Lobito Atlantic Railway (1,300 km with a 450 km extension to Kolwezi) to shorten transit times to about seven days; LAR has received $753 million in financing from the U.S. International Development Finance Corporation and the Development Bank of Southern Africa. EGC, Trafigura and EVelution plan to jointly develop a responsible sourcing and traceability framework aligned with EGC standards, OECD Due Diligence Guidance and applicable U.S. regulatory standards.
Timeline and next steps
Construction of EVelution Energy’s facility is expected to commence in early 2027 with completion targeted by the end of 2029. The parties have agreed to advance discussions toward definitive long-term commercial agreements over the coming months.
Source: trafigura.com
