A new $450 million cobalt processing plant under construction in Arizona will be powered by a dedicated 28-megawatt solar farm spanning about 61 hectares. The clean electricity will feed directly into the upcoming facility, which is set to produce metallic cobalt and cobalt sulfate. Any surplus energy will be stored onsite or fed into the local grid.
Slated to reach full capacity by the end of 2029, the plant aims to process roughly 24,000 tons of cobalt hydroxide annually. This will yield around 20,000 tons of battery-grade cobalt sulfate and 3,000 tons of metallic cobalt for industrial use. According to developer EVelution Energy, this output could satisfy up to 40% of the United States’ forecasted cobalt demand.
Arizona cobalt plant to produce battery-grade cobalt sulfate and metallic cobalt
Interestingly, the raw cobalt will still be imported, primarily from the Democratic Republic of Congo (DRC), which supplies most of the world’s cobalt. Instead of mining domestically, the U.S. is localizing the higher-value, and strategically vital, processing stage-a segment largely dominated by China. This move aligns with America’s recent industrial policies focused on securing critical supply chains for technologies like batteries and defense.
U.S. focuses on cobalt processing to reduce reliance on China and DRC
The global cobalt market currently depends heavily on the DRC for about 70% of mining, while China controls much of the refining and chemical processing needed for battery production. While a single plant won’t transform the market, this is a rare case of major U.S.-based cobalt refining capacity emerging. EVelution also plans to incorporate American materials and engineering, with the project expected to create over 6,200 jobs.
Solar power integration for low-carbon cobalt production in Arizona
For Arizona, the initiative serves as a test case for pairing large-scale solar power directly with heavy industry. If development stays on schedule, the U.S. will have one of the few examples of a critical materials plant built around low-carbon energy from day one, rather than retrofitting cleaner power later.
Key details about the Arizona cobalt plant and solar farm:
- Investment: $450 million
- Location: Arizona
- Solar farm capacity: 28 megawatts spanning about 61 hectares
- Annual cobalt hydroxide processed: ~24,000 tons
- Annual output: ~20,000 tons battery-grade cobalt sulfate; 3,000 tons metallic cobalt
- Projected full capacity date: End of 2029
- Potential to meet 40% of U.S. cobalt demand
- Job creation: Over 6,200 jobs