U.S.–DRC Cobalt Deal Points to a New Scramble for Battery Supply Chains

Entreprise Générale du Cobalt, EVelution Energy and Trafigura have signed a memorandum of understanding to establish a long-term supply framework for Congolese cobalt hydroxide to the United States. Reuters reported that the arrangement is expected, subject to final agreements, to support EVelution Energy’s production of up to about 40% of projected U.S. cobalt demand.

Under the proposed framework, EVelution Energy would refine the material at its Arizona site into battery-grade cobalt sulfate and/or alloy-grade cobalt metal for the U.S. aerospace, defence and electric-vehicle battery sectors. Congo’s EGC is expected to source cobalt hydroxide under its state mandate in the Democratic Republic of Congo.

The deal fits into a broader U.S. effort to reduce dependence on critical-mineral supply chains dominated by China. Reuters noted that in December 2025, the U.S. development lender announced plans to take a stake in a new partnership to market Congo’s minerals, potentially giving U.S. end-users right of first refusal on copper and cobalt supplies.

For Kinshasa, the opportunity is obvious. Congo sits at the centre of global cobalt supply, but has long struggled to convert mineral wealth into broad-based industrial development. A structured supply agreement with U.S.-linked refining capacity could give Congo more diplomatic leverage and stronger market options.

The risk is equally clear. If the country remains mostly a source of raw or semi-processed material, the highest-value industrial gains will sit elsewhere. Refining in Arizona may serve U.S. strategic goals, but Congo’s long-term ambition should be deeper value capture at home.

Cobalt politics will therefore become increasingly complex. Western governments want secure supply. Traders want reliable offtake. Congo wants revenue, leverage and industrial credibility. Communities want cleaner governance and safer mining conditions.

This MOU is not yet transformation. It is a signal that critical minerals are moving from commodity markets into geopolitical strategy.