Glencore backs EVelution Energy’s cobalt plant plans

Mining and commodities trader giant Glencore (LSE: GLEN) has agreed to supply up to 7,000 tonnes of contained cobalt per year to U.S.-based EVelution Energy as a way to support the development of what it will be the first solar-powered commercial-scale battery metals processing plant.

“Cobalt is a critical material for current electric vehicles (EVs) battery technologies [and] we’re proud to support the development of EVelution Energy’s cobalt processing facility in the United States,” Glencore said on Facebook.

In a letter of intent inked by the parties, Glencore committed to provide EVelution with long-term supplies of cobalt hydroxide, essential for the production of cobalt sulphate used in EV batteries.

The Swiss company said the agreement was an important step in the creation of a domestic EV battery material supply chain and helps the U.S.’s transition towards a net-zero economy.

Glencore noted it may expand its supply, contingent on the growth of EVelution’s production capabilities.

The collaboration also includes discussions on the potential offtake of the entire cobalt sulphate output, alongside financial solutions for hedging and working capital.

Construction of the cobalt refinery is planned to start this year, with the goal of having it operational by the end of 2026. This facility will not only produce its own power, but also provide extra clean electricity to local farmers, EVelotion said. Additionally, it will recycle about 70% of the water it uses, minimizing its impact on the surrounding environment.

Battery metals recovery

Glencore’s move is one of the many steps the miner has taken in the past year towards tapping into the refining and recycling sectors.

In early 2023, the firm partnered up with Moroccan mining company Managem to produce cobalt from recycled battery materials at a plant near Marrakech.

A month later, Glencore announced it would expand its Britannia Refined Metals plant in southern England, which has historically been a leading re-user of lead-acid batteries found in combustion-powered cars.

It also became strategic partner of EV battery start-up Britishvolt to build a recycling plant of lithium-ion batteries in the U.K.

Glencore later inked an agreement with Spanish and Portuguese companies to offer lithium-ion battery recycling services in both countries.

It later joined Canada’s Li-Cycle Holdings (NYSE: LICY) in a plan to build a battery recycling plant in Italy, set to become Europe’s largest facility of this kind.