EVelution Energy signs $850 million deal with Mitsui to supply cobalt

April 28 (Reuters) - Electric power distributor EVelution Energy said on Tuesday it has signed an $850 million agreement to supply cobalt from its facility in Arizona to Japan's Mitsui 8031.T for five years.

The U.S. and Japan are advancing efforts to strengthen global supply chains for energy and critical minerals. Earlier this year, Japan agreed to invest up to $73 billion in U.S. energy projects and an action plan ​to develop alternatives to China for critical minerals and rare earths.

• EVelution Energy will supply up to 3,000 metric tons of contained cobalt per year from its upcoming Yuma County, Arizona facility.

• Contained cobalt refers to the volume of pure cobalt within a product such as cobalt sulfate or cobalt metal.

• Upon reaching full operational capacity, the facility is projected to deliver up to 7,000 metric tons per year of cobalt sulfate and/or cobalt metal.

• Cobalt is a critical input in EV batteries. It is also used in jet engine superalloys, satellite systems, permanent magnets, high-performance microchips and other critical advanced technologies.

• Construction of the facility is expected to begin in early 2027 and finish by end-2029.

• The project is expected to create more than 3,300 jobs in Yuma County.