The Key Minerals of the African Continent: Under the "Critical Minerals Advancement Initiative," the United States has turned its focus to artisanal cobalt mining technologies in the Democratic Republic of the Congo (DRC).

¬ The state-owned Congolese cobalt company EGC has signed a memorandum of understanding (MoU) with EVelution Energy and commodity trader Trafigura to jointly establish a cobalt supply chain connecting the DRC and the United States.

¬ This deal will provide raw cobalt feedstock for a planned refining plant in Arizona, which is expected to become the first commercially scaled cobalt refinery in the U.S.

¬ The agreement supports Washington’s efforts to secure critical mineral supplies from the DRC, while Kinshasa aims to strengthen control over its domestic cobalt industry and enhance local value addition.

On Wednesday, May 13, Cobalt Integrated Enterprise (EGC) announced the signing of an MoU with EVelution Energy and Trafigura to establish a cobalt supply chain between the United States and the Democratic Republic of the Congo. Under this agreement, the initiative will help the formal regulatory body for artisanal cobalt mining in the DRC build a supply framework capable of meeting approximately 40% of U.S. strategic metal demand.

EGC, established by the DRC government in 2019, is the only entity authorized to purchase, process, and export cobalt from artisanal mining sites within the country. According to the agreement, EGC will supply hydroxide cobalt via its authorized channels to EVelution Energy, providing raw material for the American company’s planned sulfuric cobalt plant in Arizona — a facility that will produce higher-value battery-grade cobalt products.

EVelution stated that the project could become the first commercially scaled cobalt refinery in the United States, helping leverage imported cobalt resources from the DRC to ensure domestic processing capacity for the U.S. market. Under the agreement, Trafigura will manage logistics coordination, with the Lobito Corridor serving as the primary transport route.

A New Chapter in America’s Strategic Manual

This agreement marks another U.S. move into the cobalt mining sector of the DRC — following Virtus Minerals’ recent acquisition of Chemaf and its copper-cobalt mines. The move also aligns with the critical minerals cooperation agreement signed between the two countries in December 2025: under this pact, Congolese state-owned enterprises have committed to prioritizing supply to the U.S. market, aiming to redirect about 30% of their cobalt sales toward the United States over the next five years.

This initiative involving EGC carries additional strategic significance, as Kinshasa has strengthened national controls over cobalt exports since 2025. After imposing a months-long export ban on the metal, authorities introduced a quota system. Cobalt is widely used in electric vehicle batteries, defense systems, and aerospace applications.

Under the quota framework, EGC’s allocation stands at 1,775 tons for 2026 and increases to 5,640 tons in 2027, making it the fifth-largest quota holder in the industry — which remains predominantly dominated by private firms, including CMOC, the world’s largest cobalt supplier. The agreement has also reignited interest in the artisanal mining sector: despite longstanding concerns over working conditions, this sector has historically accounted for 15% to 30% of the nation’s total cobalt production.

EGC CEO Eric Karala stated that the MoU underscores the DRC’s commitment to building responsible supply chains — ones that meet international standards while generating greater value locally.

What’s Next?

Parties still need to negotiate the final terms of the project before signing a legally binding agreement. Specific figures regarding the total volume of cobalt EGC is expected to supply remain undisclosed; given its existing relationship with Mercuria, this issue is likely to draw significant attention. In February this year, EGC announced its first transaction with the trading firm, supplying copper and cobalt to destinations including the United States, the United Arab Emirates, and Saudi Arabia.

This discussion comes at a time when the DRC is striving to transcend its traditional role as a raw materials supplier, aiming instead to transform through domestic processing of mineral resources. Although the proposed agreement primarily focuses on supply collaboration, it also reflects broader ambitions for refining development in the DRC. The MoU includes technical assistance provisions and allows EGC to acquire minority equity stakes in EVelution Energy or its planned refining projects — which are expected to begin construction in 2027.

Source: ecofinagency

Original article: toutiao.com/article/1865164382661760/

Disclaimer: The views expressed in this article are those of the author(s) and do not necessarily reflect the position of the publisher.