Chapter 17: EVelution Energy on Track to Supply 20% of U.S. Cobalt Demand by 2027
In Chapter 17 of Michael Gibson’s ongoing interview series with EVelution Energy, CEO Navaid Alam outlined the massive role the company’s Yuma, Arizona, cobalt facility will play in strengthening America’s EV supply chain.
With U.S. cobalt demand projected to grow 25 – 35% annually, reaching 35,000 tons per year by 2027, EVelution Energy expects to supply 7,000 tons annually — approximately 20% of U.S. demand.
“We expect to produce 7,000 tons a year, which is about 20% of the U.S. market — and we might be the only producer up and running in 2027.”
– Navaid Alam, President & CEO, EVelution Energy
Construction is slated to begin in Q4 2025, with production starting in Q4 2027 after a two-year build cycle. If successful, EVelution Energy could be America’s only cobalt producer at scale, providing a secure domestic source of this critical mineral.
Evelution Energy Interview Chapter 17
Michael Gibson, USAdvisors, interviews Navaid Alam, President & CEO of EVelution Energy,
Transcript
Evelution Energy Interview Chapter 17 Transcript
Michael Gibson, Managing Director of US Advisors (USAdvisors.org) an independent Registered Investment Advisory Firm. Michael also owns and runs EB-5 Investments (eb5projects.com) and is an EB5 industry expert.
Navaid Alam, President & Chief Executive Officer
Gil Michel-Garcia, Executive Vice President, General Counsel, Treasurer & Secretary
Michael Gibson, speaking
So, Navaid just to give a sense for, how big is this plant? How much will you be producing? How much does the United States need? Just so we can get a sense. Because, I understand, we're talking about a phase 1 operation. You may be doing some things in the future with a phase 2. But for now, for this current production cycle, what are you looking to produce per year? How much is the, the, the US demand in the market? So, how much are you producing? How much is needed? And then how much do you think you'll be able to produce, may be in the future? As well as, how much is that market growing? Or is it stable?
Navaid Alam, speaking
So the market is growing annually, approximately between 25% and 35% a year. And we expect to produce, in contained cobalt terms, 7,000 tons a year. And the market, at the time we start production, is expected to be up 35,000 tons a year, in the United States. So that's about 20% of the US market. We will be able to produce.
Michael Gibson, speaking
So there's, there's a 5X demand, more demand than, than you can produce.
Navaid Alam, speaking
Right.
Michael Gibson, speaking
Yeah.
Navaid Alam, speaking
And we might be the only producer up and running in 2027, which is when we expect to be running.
Michael Gibson, speaking
We should say that there probably, I mean with this kind of a margin, and this kind of a demand in the United States, there's probably gonna be some other people coming online. But do you think in terms of your business plan, and where you're located, you may have some competitive advantages? Should other people come online.
Navaid Alam, speaking
Yeah, absolutely. We, we only know of one other cobalt facility in the United States, that might be coming online. And that's in Missouri. And they may only produce 2,000 tons of cobalt annually, contained cobalt annually. And we're producing 7,000 tons.
Michael Gibson, speaking
So you're, you're already at a much higher level than they are.
Navaid Alam, speaking
Yeah, much higher level. And as I mentioned, the North American demand would only be about 30, would be 35,000 tons. And current supply is looking to be only 9,000 tons. So, there's significantly more demand than supply coming online.
Michael Gibson, speaking
Well I, I, I wanna end it here. Although I know there's, we, we plan to do a site visit. You, when do you think you'll begin? I know you're doing some site prep now, you're drilling some wells, you're doing some other things at the site. When do you think construction, in earnest, will begin?
Navaid Alam, speaking
We expect construction to start, at the end of 2025, 4, Q4 2025 . It's a two year construction cycle. So we expect to be producing in Q4 2027.