ERG and EVelution Energy Partner Up for Cobalt Supply to the US
Overview
Eurasian Resources Group (ERG), a renowned diversified natural resources group, has forged a preliminary five-year sales contract with US-based electric vehicle battery materials processor, EVelution Energy (EVelution).
Deal Insights
ERG is set to supply its cobalt hydroxide to EVelution's upcoming cobalt processing facility in the US, with construction slated for 2024. Remarkably, this supply is projected to fulfill nearly half of EVelution's yearly feedstock needs. This significant move was revealed during the LME Week in London, a pivotal yearly event for the global metals community.
Supporting the US Cobalt Industry
This partnership is expected to bolster the cobalt mineral processing industry within the US. Currently, the US lacks commercial-scale cobalt processing facilities. Moreover, China dominates the cobalt sulphate production, accounting for over 70% of the global yield.
Supply Source
The cobalt hydroxide to be provided under this agreement will originate from Metalkol, ERG's prime operation based in the DRC. Metalkol stands as one of the premier cobalt producers globally.
Statements from the Companies
EVelution Energy's President and CEO, Navaid Alam, expressed his satisfaction with the partnership, stating, "We are very happy to have ERG as our long-term supply partner." Alam highlighted the significance of this collaboration and ongoing negotiations, aiming to meet the escalating demand for domestically produced, carbon-neutral EV battery-grade cobalt sulphate in North America.
About ERG
Eurasian Resources Group stands tall as a leading diversified natural resources conglomerate. The firm's holistic operations encompass everything from raw material extraction to processing, energy, logistics, and marketing. Some of the Group's significant assets in Kazakhstan include TNC Kazchrome, SSGPO, Aluminium of Kazakhstan, Kazakhstan Aluminium Smelter (KAS), Eurasian Energy Corporation (EEC), Shubarkol Komir, and Transportation Group TransCom LLP.
