EVelution Energy secures increased financing support from EXIM:What it means for the US’ critical mineral space?
EVelution Energy has secured an increased non-binding Letter of Interest from the US Export-Import Bank of up to US$275 million for its cobalt processing facility in Arizona, under the Make More in America initiative. The 37.5% increase follows substantial progress in engineering, permitting and commercial development. If approved, the financing would cover more than 60% of the estimated US$450 million construction cost. The company has executed a binding five-year offtake agreement with Mitsui & Co valued at approximately US$850 million, and received a financing LOI from Finland's Finnvera for up to US$70 million. Combined sovereign export credit support potential amounts to around US$345 million. The facility aims to produce approximately 7,000 metric tons of contained cobalt annually, meeting up to 40% of projected US demand, and is expected to begin construction in 2027 with commercial operations targeted for 2029.
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EVelution Energy LLC announced that the Export-Import Bank of the United States (EXIM) has re-issued its non-binding Letter of Interest (LOI). EVelution Energy is a US critical minerals company developing America’s first commercial-scale, solar-powered cobalt sulfate and cobalt metal processing facility. The increased proposed financing support for the Arizona facility amounts to around US$200 million to up to US$275 million under EXIM’s Make More in America (MMIA) initiative.
Navaid Alam, President & CEO of EVelution Energy, said, “America cannot build resilient critical minerals supply chains without building domestic processing capacity. EXIM’s decision to increase proposed financing support to US$275 million is a meaningful vote of confidence in the progress we have made. Every milestone brings us closer to constructing America’s first commercial-scale cobalt processing facility.”
A milestone in financing America’s first commercial-scale cobalt facility
The 37.5% increase in proposed financing is a major milestone in advancing the project toward construction. If approved following EXIM’s due diligence and credit approval process, the financing would cover more than 60% of the estimated US$450 million construction cost of the cobalt processing facility in Yuma County, Arizona.
This increase follows substantial progress across engineering, permitting, commercial development, strategic partnerships, and project financing, which have collectively enhanced the project’s bankability by reducing development risk and strengthening its commercial and technical profile.
Can it address the US’ vulnerabilities in domestic critical minerals supply?
Currently, over 75% of global refined cobalt production is controlled by China, while the US lacks commercial-scale cobalt refining capacity despite cobalt’s critical role in aerospace, defence, electric vehicle batteries, semiconductors, and advanced manufacturing.
EVelution Energy’s Arizona facility aims to establish secure domestic refining capacity capable of producing battery-grade cobalt sulfate for North American electric vehicle manufacturers and alloy-grade cobalt metal for US aerospace, defence, and industrial applications.
When fully operational, the facility is expected to produce approximately 7,000 metric tons of contained cobalt annually, about 4,000 metric tons as battery-grade cobalt sulfate and 3,000 metric tons as alloy-grade cobalt metal, meeting up to 40% of projected US cobalt demand.
The progress so far
Since EXIM’s original LOI, EVelution Energy has executed a binding five-year commercial offtake agreement with Mitsui & Co., valued at approximately US$850 million based on current market prices, covering most of the facility’s alloy-grade cobalt metal production.
It has also established strategic cobalt feedstock supply frameworks with Trafigura, Entreprise Générale du Cobalt, and Eurasian Resources Group and received an LOI from Finland’s export credit agency, Finnvera, indicating potential financing support of up to US$70 million.
The company has commenced construction of a 28 MW solar energy facility to power operations. It has also secured Arizona’s nomination for Rural Opportunity Zone designation under Opportunity Zone 2.0.
These achievements have strengthened the project’s commercial profile, reduced execution risk, and enhanced its financing framework.
Increased funding supports EXIM’s Make More in America initiative to boost domestic manufacturing, enhance supply chains, and promote the reindustrialisation of key sectors.
Critical minerals processing is a key component of this strategy, essential for resilient supply chains supporting defence, aerospace, electric vehicles, energy storage, and advanced manufacturing.
Establishing a diversified sovereign financing platform
EVelution Energy has potential sovereign export credit support of around US$345 million, including the re-issued EXIM LOI and the LOI from Finnvera.
These initiatives are crucial for securing senior construction financing and highlight the facility’s strategic importance to allied industrial policy.
The broader financing strategy of the company combines sovereign-backed export credit financing, Qualified Opportunity Zone equity, EB-5 subordinated debt, institutional equity, and potential strategic investments from commercial partners.
Construction is expected to begin in 2027 following completion of the Bankable Feasibility Study and project financing, with commercial operations targeted for 2029.