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The MOU was signed on 13 May 2026 at a ceremony in Madrid and creates a tripartite commercial framework structured around three distinct roles:
1. EGC (origination). Entreprise Générale du Cobalt is the DRC state cobalt monopsony established under the 2018 Mining Code (Loi 18-001) and operationalised in 2021. EGC holds the exclusive right to purchase cobalt hydroxide produced by artisanal and small-scale miners (ASM) across the DRC's Copper Belt. Under the MOU, EGC will originate cobalt hydroxide feedstock from the ASM sector for export to the US under the supply framework.
2. Trafigura (logistics and marketing). Trafigura provides supply chain management, logistics, and marketing services for the cobalt hydroxide movement from DRC to the EVelution Arizona refinery. Trafigura has significant existing infrastructure in the DRC copper belt corridor and was previously a major trader of DRC cobalt to Chinese refiners; the MOU redirects a material volume toward the US.
3. EVelution Energy (processing). EVelution Energy LLC is a US cobalt refiner developing the first commercial-scale cobalt refinery on US soil, located in Yuma County, Arizona. Construction is expected to begin in 2027 with target completion in 2029. The refinery will process cobalt hydroxide into: - Battery-grade cobalt sulfate — for EV battery cathode precursors - Alloy-grade cobalt metal — for aerospace and defence superalloys
The designed capacity is sized to serve approximately 40% of projected US cobalt demand across these end-use sectors.
The MOU is the first commercial-level instrument to operationalise the US-DRC Strategic Partnership Agreement (SPA) signed on 4 December 2025 (filed: 2025-12-04-us-drc-strategic-partnership-agreement). The SPA created the Strategic Asset Reserve (SAR) framework and committed DRC state entities to route a meaningful share of their cobalt marketing rights toward US-aligned buyers via the Sakania-Lobito Corridor. The EGC–Trafigura–EVelution MOU is the SPA's first concrete execution: it pairs EGC's ASM-sector cobalt origination mandate with a US processing destination, establishing a primary supply pathway that does not transit Chinese smelters.
The parallel Orion CMC × Glencore MOU (February 2026) targets the large-scale mining cobalt volumes from Mutanda and Kamoto; this EGC MOU targets the artisanal cobalt stream that EGC controls under its monopsony mandate. Together they represent a two-stream approach to redirecting DRC cobalt toward US processing capacity.
significant (~40% of projected US demand) but is a single supply-chain agreement, not a regulatory or policy instrument. It can be renegotiated or superseded. Severity 4 is reserved for framework instruments (the SPA itself is severity 4).
refinery currently exists in the US. If EVelution's Arizona facility is built and commissioned, it eliminates the US's complete dependence on offshore (primarily Chinese) cobalt processing. That is structurally significant — hence severity 3 rather than 2.
avoids Chinese intermediaries at the processing stage, positioning product as FEOC-clean (Foreign Entity of Concern) under IRA §45X battery-production tax credit rules. This is the commercial rationale that makes the MOU viable for US battery and defence manufacturers.
global cobalt refining capacity. The Arizona facility, if completed, removes a meaningful share of DRC ASM-origin cobalt from the China-bound flow. Watch whether CMOC, Huayou Cobalt, or other Chinese intermediaries attempt to counter-bid for EGC volumes.
since its creation — inconsistent purchasing, payment delays, and formal market channels competing with informal Chinese-linked intermediaries. The MOU's viability depends on EGC maintaining effective control over ASM cobalt volumes in Katanga.
the MOU date. Commercial-scale cobalt refinery capex is substantial (hundreds of millions USD). The MOU does not guarantee DFC or US government financing for the facility; EVelution's ability to close project financing determines whether the 2029 target is achievable.
MOU reinforces its strategic position in the Lobito Corridor infrastructure — consistent with the Sakania-Lobito routing mandate in the Dec 2025 SPA.
requires supply-chain due-diligence compliance. EGC's ASM-sourced cobalt has historically faced traceability challenges. Watch for formal OECD Due Diligence Guidance compliance protocols attached to the definitive agreements.
frameworks; the supply relationship is not contractually locked until offtake agreements are executed.
commercial vehicles. Has DFC offered loan guarantees or equity support for the EVelution Arizona facility?
MOUs routing DRC cobalt to US buyers may compete for the same DRC transport and logistics corridor capacity. Coordination under the JSC is untested.
entities have historically circumvented EGC's monopsony through informal channels. The MOU's enforceability depends on DRC government backing.