EVelution Energy Signs $850 Million Cobalt Supply Deal with Mitsui

EVelution Energy has signed an $850 million, five-year agreement to supply cobalt from its planned facility in Yuma County, Arizona, to Japan’s Mitsui & Co., according to Reuters. The deal highlights growing cooperation between the United States and Japan in critical minerals, clean energy, electric vehicles, and advanced manufacturing.

Major Cobalt Agreement Between U.S. and Japan

Under the agreement, EVelution Energy will supply up to 3,000 metric tons of contained cobalt per year to Mitsui. Contained cobalt means the amount of pure cobalt inside products such as cobalt sulfate or cobalt metal.

The project is important because cobalt is widely used in electric vehicle batteries, aerospace parts, jet engine superalloys, satellite systems, permanent magnets, high-performance chips, and other advanced technologies.

Arizona Facility Expected to Support Domestic Supply

EVelution’s upcoming cobalt processing facility in Yuma County, Arizona, is expected to become a key part of the U.S. critical minerals supply chain. Once fully operational, the plant is projected to produce up to 7,000 metric tons per year of cobalt sulfate and/or cobalt metal.

Construction is expected to begin in early 2027 and finish by the end of 2029. The project is also expected to create more than 3,300 jobs in Yuma County, bringing new economic activity to the region.

Why the Deal Matters

The agreement comes as the United States and Japan work to reduce dependence on China for critical minerals and rare earth supply chains. Earlier this year, Japan agreed to invest up to $73 billion in U.S. energy projects and support an action plan focused on building alternatives to China in critical minerals.

For the U.S., the deal could help strengthen local processing capacity for materials needed in electric vehicles, defense systems, and clean-energy technologies. For Japan, Mitsui gains access to a long-term supply of cobalt from a U.S.-based source, which may improve supply security for Japanese industries.

Cobalt’s Role in the Energy Transition

Cobalt remains a valuable mineral for high-performance batteries and advanced industrial uses. While some battery makers are reducing cobalt use in certain battery chemistries, the material is still important for many applications where durability, stability, and performance are required.

The EVelution-Mitsui agreement shows that companies and governments are still investing heavily in secure cobalt supply chains. As electric vehicles, renewable energy storage, aerospace technology, and defense manufacturing grow, reliable access to refined cobalt could become even more important.

Broader Impact on Critical Minerals Strategy

This deal is not only a commercial supply agreement. It also reflects a wider shift in global industrial strategy. Countries are trying to build stronger supply chains closer to trusted partners. The U.S. wants more domestic processing of minerals, while Japan wants stable access to resources for its manufacturers.

By linking an Arizona processing facility with a major Japanese trading company, the agreement may help create a more resilient critical minerals network between allied economies.

Conclusion

EVelution Energy’s $850 million cobalt supply deal with Mitsui marks a major step for U.S.-Japan cooperation in critical minerals. With the Arizona facility expected to begin construction in 2027 and reach completion by the end of 2029, the project could support jobs, reduce supply-chain risks, and strengthen access to cobalt for electric vehicles, aerospace, defense, and advanced technology industries.

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