EVelution Energy Announces $200 Million Cobalt Production Facility In Yuma County

YUMA COUNTY, AZ (March 29, 2023) – EVelution Energy, a U.S. electric vehicle (EV) battery materials processing company, announced plans to build a solar-powered carbon neutral cobalt sulfate production facility in Yuma County, Arizona. This facility, the first of its kind in the U.S., is expected to commence construction in 2024, be fully operational by 2026, and create approximately 300 construction jobs and 60 full-time jobs once operational.

Representing a $200 million investment, the facility will produce cobalt sulfate for EV batteries, a material crucial to America’s initiative to electrify the U.S. automotive fleet and transition to a net-zero economy. Cobalt sulfate is an integral component of the U.S. electric vehicle (EV) critical materials supply chain. EVelution Energy’s facility is expected to produce approximately 33,000 metric tons of EV battery grade cobalt sulfate per year, enough to support the domestic production of approximately 470,000 EVs each year.

“This is a big win for Yuma and our drive toward a more sustainable future,” said Governor Katie Hobbs. “Arizonans working at this facility will advance our transition to a clean energy economy and bolster Arizona’s reputation as a pioneer in a resilient and sustainable future. Thank you to EVelution Energy for your commitment to Arizona and for creating quality jobs for Arizonans in rural communities.”

“We are very excited to develop a domestic EV battery-material production facility, particularly a solar-powered facility, which is of key importance to the United States,” said Navaid Alam, President and CEO of EVelution Energy. “Our new production facility will bring back basic infrastructure and re-onshore jobs and technology to the United States and decrease our reliance on other countries for critical EV battery materials. We are grateful to Governor Hobbs, Senator Sinema and Senator Kelly, the Arizona Commerce Authority, the Greater Yuma Economic Development Corporation and M3 Engineering for their partnership, as well as Yuma County and the Yuma County Board of Supervisors for their support.”

"EVelution Energy's investment in Arizona, helped by our energy and infrastructure laws, will strengthen our critical minerals supply chains, our national security, and our energy independence,” said Arizona senior Senator Kyrsten Sinema. “We'll keep working together creating lasting careers and an economy that benefits everyone in our state."

“EVelution Energy’s new facility represents a significant addition to Arizona’s battery manufacturing ecosystem,” said Sandra Watson, President and CEO of the Arizona Commerce Authority. “We are grateful to EVelution Energy for choosing Yuma County for this innovative facility that will drive further economic growth in rural Arizona.”

Built in a qualified opportunity zone in Yuma County between Tacna and Dateland, this best-in- class “green” facility will apply sustainable practices across all aspects of manufacturing and operations. In addition, the fully solar-powered facility is expected to not only supply all of its own power needs, but also support the surrounding agricultural community with clean power.

“The Greater Yuma EDC is proud to support the EVelution Energy Project in Eastern Yuma County,” said Julie Engel, President and CEO, Greater Yuma Economic Development Corporation. “The combination of new legislation, increased EV vehicle production and worldwide EV battery shortages have all led to the vision and future deployment for this cobalt processing facility, which will create a tremendous positive impact on the nation’s EV supply chain, the Department of Defense's critical minerals supply chain, and attract opportunities from new U.S. mining sources, further reducing costs and securing the supply chain. We sincerely appreciate the support this project has received from the federal government, state government and local jurisdictions to help make this a reality.”

“I believe EVelution Energy is a good project for Yuma County,” said Darren Simmons, Yuma County Supervisor for District 3. “We as a community look forward to working closely with EVelution Energy to proactively address community concerns as the project moves forward, ensuring the facility will add value to the community and has a strong foundation for long-term success in Yuma County.”

EVelution Energy’s proposed investment highlights the recent ramp-up of economic activity in rural Arizona including Optimal Health Systems’ supplement production expansion in the Town of Pima, FrameTec’s $40 million manufacturing facility in Camp Verde and Nucor’s $100 million expansion of its steel production facility in Kingman.

Media Contacts

EVelution Energy: [email protected]

Alyssa Tufts, Arizona Commerce Authority, [email protected]

About EVelution Energy
EVelution Energy LLC is a newly formed “qualified opportunity zone” business focused on building and operating the first solar-powered, carbon-neutral, Electric Vehicle (EV) battery-grade materials processing facility in the United States. EVelution Energy’s proposed processing facility is located in a “qualified opportunity zone” in Yuma County, Arizona. EVelution Energy LLC is a wholly owned subsidiary of the EVelution Energy QOZ Fund, LP, a newly formed US based “qualified opportunity zone” fund, organized for the purpose of investing in “qualified opportunity zone” properties and businesses in the United States. The Qualified Opportunity Zone Program was established by the Tax Cuts and Jobs Act of 2017 to provide a tax incentive for private, long-term investments in economically distressed communities. EVelution Energy is led by an execution-focused team of experienced professionals with extensive international experience in successfully completing large strategic infrastructure projects in various locations worldwide.

About the Arizona Commerce Authority
The Arizona Commerce Authority (ACA) is the state's leading economic development organization with a streamlined mission to grow and strengthen Arizona's economy. The ACA uses a three-pronged approach to advance the overall economy: attract, expand, create - attract out-of-state companies to establish operations in Arizona; work with existing companies to expand their business in Arizona and beyond; and help entrepreneurs create new Arizona businesses in targeted industries. For more information, please visit azcommerce.com and follow the ACA on Twitter @azcommerce.