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EVelution Energy has confirmed sufficient groundwater resources to support its planned commercial-scale cobalt processing facility in Arizona, removing a key project risk as the company advances towards construction.
Groundwater Milestone Supports Project Development
EVelution Energy has completed a hydrogeological programme confirming substantial groundwater resources beneath the site of its proposed cobalt processing facility in Yuma County, Arizona.
The company said the findings de-risk the approximately US$450 million project by validating one of its key operational requirements, while also supporting future expansion beyond the plant’s initial production capacity.
The drilling programme, carried out under the supervision of BasinWells Associates, included groundwater sampling, aquifer testing and hydrogeological analysis. According to the company, the results confirmed aquifer capacity capable of supporting the facility throughout its planned operating life.
Navaid Alam, President and CEO of EVelution Energy, said: “The successful confirmation of substantial groundwater resources beneath the project site removes another critical development risk and brings us one step closer to construction of the first solar-powered commercial-scale cobalt processing facility in the United States.
“From the outset, we have designed this project to combine domestic critical minerals processing with responsible environmental stewardship through advanced water treatment, extensive water recycling, closed-loop operations and modern environmental controls. This milestone further strengthens the technical foundation of the project as we continue advancing toward construction.”
Navaid Alam, President and CEO of EVelution Energy
Key Achievements
Groundwater Confirmed: Hydrogeological testing confirmed sufficient groundwater resources to support the planned facility throughout its operating life, including potential future expansion.
Water-Efficient Design: The plant is being engineered with a closed-loop water management system that will recycle around 70 per cent of process water, with no on-site process-water discharge or tailings storage.
Project De-Risked: Confirmation of groundwater availability removes a key development risk and supports ongoing engineering, permitting, financing and construction planning.
Critical Minerals Investment: The approximately US$450 million project aims to establish the first commercial-scale, solar-powered cobalt processing facility in the United States, strengthening domestic critical minerals supply chains.
Construction Progress: Development continues following the start of construction on a 28 MW solar facility, with the cobalt processing plant expected to begin construction in 2027 ahead of planned commercial operations in 2029.
Closed-Loop Water System Targets Lower Consumption
Water availability remains a significant consideration for mining and minerals processing projects, particularly in arid regions. EVelution Energy said its processing facility has been designed to minimise freshwater demand through a closed-loop water management system.
The company expects to recycle and reuse approximately 70 per cent of process water while eliminating on-site process-water discharge and tailings storage. Process residues will instead be treated and disposed of at licensed off-site facilities.
Net freshwater consumption is expected to average around 408 acre-feet per year, which the company said is broadly equivalent to the annual irrigation requirements of around 70 acres of farmland in Yuma County.
Groundwater testing also identified elevated salinity levels, although EVelution Energy said its planned water treatment systems are designed to use this resource, reducing reliance on higher-quality freshwater supplies.
Project Advances Towards Construction
The groundwater programme will support completion of the project’s Bankable Feasibility Study, including detailed design of production wells, water treatment infrastructure and recycling systems.
The proposed facility is intended to become the first commercial-scale, solar-powered cobalt metal and cobalt sulfate processing plant in the United States, supporting domestic critical minerals supply chains serving the aerospace, defence, electric vehicle and advanced manufacturing sectors.
The project has already reached several development milestones, including the start of construction on a 28 MW solar energy facility, progress on long-term cobalt feedstock and offtake agreements, and the development of a diversified financing strategy involving private investment and export credit initiatives.
Construction of the processing facility is expected to begin in early 2027, with commercial production targeted for 2029.
Economic Benefits for Arizona
According to an independent economic impact assessment cited by the company, the project is expected to support more than 6,200 direct, indirect and induced jobs while generating approximately US$1.2 billion in annual economic activity.
The study also estimates the facility will contribute around US$326 million in annual household earnings, with most of the economic benefits expected to be realised within Arizona, particularly in rural Yuma County.
This article was produced by the editorial team at Mining Outlook and published as part of the Outlook Publishing global network of B2B industry magazines.
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