In a big win for Arizona's far southwest corner, Mitsui & Co. has agreed to snap up most of the cobalt metal from a planned solar-powered processing plant in Yuma County under a roughly $850 million, five-year offtake agreement. The deal hands the project a flagship customer and nudges a key piece of America’s battery supply chain closer to home turf.
As reported by Phoenix Business Journal, the binding pact covers nearly all of the facility’s cobalt metal production, while terms for cobalt sulfate are still being hammered out. The local outlet noted the deal was disclosed April 29 and follows EVelution Energy’s 2023 announcement that the plant would run on solar power and be among the first U.S. facilities of its kind.
Production, Timeline and Scale
EVelution says the plant will initially supply Mitsui with up to 3,000 metric tons of contained cobalt per year, with an eventual total capacity of about 7,000 metric tons of cobalt sulfate and metal annually. In a press release via Business Wire, the company said it expects construction to kick off in early 2027 and wrap up by the end of 2029.
The same statement projects more than $750 million in local economic impact and about 3,300 direct, indirect and induced jobs over the life of the project. “Establishing secure cobalt processing infrastructure in the United States is essential to strengthening the resilience of the U.S. industrial base,” EVelution president Navaid Alam said in the release.
Why the Deal Matters
Cobalt is a critical ingredient for electric vehicle batteries, aerospace alloys and other high-tech applications, yet most of the world’s refining capacity is overseas, a strategic weak spot this agreement is meant to ease. As reported by EnergyTech, Mitsui’s offtake is designed to secure feedstock for manufacturers and traders in allied countries while cutting exposure to non-allied refining networks.
Local Benefits and Unanswered Questions
EVelution’s own filings state that Yuma County signed off on the project in 2023 and that the company previously received a non-binding letter of intent from the Export‑Import Bank to support construction financing. According to EVelution Energy, the plant’s design calls for a large on-site solar array, recycling of process water and no on-site tailings storage, along with workforce training efforts in partnership with Arizona Western College.
Even with those elements outlined, questions remain. Water use in the desert, future permits and detailed waste-management plans are expected to draw close scrutiny as the project’s financing and regulatory approvals move ahead.
Next Steps
With a major buyer now locked in, EVelution and Mitsui still need to finalize pricing and contract terms for cobalt sulfate, secure full project financing and clear a gantlet of local and federal permits before any dirt gets turned. So far, company representatives have pointed reporters back to their public filings and press materials for comment.
