ERG seals five-year deal with EVelution Energy for cobalt supply to U.S
ALMATY. Oct 13 (Interfax) - Eurasian Resources Group (ERG), a leading diversified natural resources group, has signed a preliminary five-year sales agreement with EVelution Energy, the U.S. electric vehicle battery materials processing company.
"The agreement to supply ERG's cobalt hydroxide to the EVelution's cobalt processing facility in the US, the construction of which is expected to start in 2024, should account for almost half of the company's annual feedstock requirements," the company said in a press release.
The announcement was made on the sidelines of LME Week in London, the annual gathering of the global metals community.
"Cooperation between the two companies also supports the development of the U.S.-based cobalt mineral processing industry. Currently, there are no cobalt processing facilities, on a commercial scale, in the U.S., with over 70% of the global production of cobalt sulphate based in China," according to the press release.
ERG's cobalt hydroxide will be supplied by Metalkol, the Group's DRC-based flagship operation, which is one of the world's top cobalt producers.
"We are very happy to have ERG as our long-term supply partner," said Navaid Alam, President and CEO of EVelution Energy. "This agreement, as well as those we are negotiating with other supply partners, ensures that we will have the cobalt hydroxide feedstock that we need to satisfy our clients' growing demand for domestically produced IRA qualified carbon-neutral EV battery grade cobalt sulphate in North America."
Eurasian Resources Group is a leading diversified natural resources group. The company's integrated operations span the entire value chain from extraction and production through to processing, energy, logistics and marketing. TNC Kazchrome, SSGPO, Aluminium of Kazakhstan, Kazakhstan Aluminium Smelter (KAS), Eurasian Energy Corporation (EEC), Shubarkol Komir and Transportation Group TransCom LLP are among the Group's major assets in Kazakhstan.
