EGC, EVelution Energy and Trafigura agree MOU for US–DRC cobalt supply chain

May 13 (Reuters) - Entreprise Générale du Cobalt (EGC), EVelution Energy LLC and Trafigura Pte Ltd. on Wednesday announced a memorandum of understanding to set up a long-term supply framework for Congolese cobalt hydroxide to the United States.

"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.

It said EVelution Energy is set to refine the material at its Arizona site into battery-grade cobalt sulfate and/or alloy-grade cobalt metal for the U.S. aerospace, defense and electric vehicle battery sectors, while EGC is expected to source cobalt hydroxide under its state mandate in the Democratic Republic of Congo.

In December 2025, the United States' development lender announced plans to take a stake in a new partnership to market Congo's minerals which could give U.S. end-users the right of first refusal on copper and cobalt supplies.