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Cobalt Plant Taps Opportunity Zones for $50M
16 Sep
Summary
- Arizona cobalt processing facility seeks federal tax incentives.
- Major customer committed to $850M in cobalt product purchases.
- Project aims to attract up to $50M in equity via Opportunity Zones.
In Arizona's Yuma Desert, EVelution Energy is pursuing the development of a critical cobalt processing facility, aiming to be one of the first of its kind in the U.S. The $450M project has already secured substantial debt financing and a major customer for $850M of its output, but requires additional equity investment.
Developers nationwide are actively engaging with state governments to nominate potential sites for the Opportunity Zone program. Inclusion in this program allows projects like EVelution's to access a significant pool of capital, potentially unlocking tens of millions in equity. Nominations for the current round are due September 28, with a possible one-month extension.
Gil Michel-Garcia, co-founder of EVelution Energy, emphasized the urgency and scale of the effort, noting that hundreds of millions of dollars are contingent on securing these federal incentives. Proactive engagement with state authorities is crucial for developers seeking to have their projects designated as Opportunity Zones.
