Jervois Global Limited (ASX: JRV) has entered into a non-binding explorative memorandum of understanding with Global Tungsten & Powders LLC (GTP) to jointly evaluate GTP making a minority equity investment in Jervois’ proposed US cobalt refinery.
Jervois has recommenced work on its previously announced and well-advanced bankable feasibility study (BFS) for a US cobalt refinery, after pausing activity starting 26 April 2024. The US cobalt refinery BFS is being conducted with AFRY USA LLC (AFRY) with annual capacity of 6,000 metric tonnes per annum of cobalt in sulphate form, suitable for electric vehicles.
The facility is expected to supply sufficient cobalt for approximately 1.2 million electric vehicles per annum. The cobalt refinery BFS is fully refundable through the existing U.S. Department of Defense (DoD) Defense Production Act (DPA) Title III funding agreement. The pause in BFS work was occasioned by a DoD request to stop work under the funding agreement, which has now been lifted.
GTP is an existing cobalt customer of Jervois and is expected to provide recycling feedstock for the US refinery as part of its potential equity investment. In addition, Jervois’ US cobalt refinery could potentially be co-located at GTP’s existing facilities in Towanda, Pennsylvania. Jervois’ two short listed sites are in Pennsylvania and Louisiana.
Jervois has submitted an application to the Department of Energy (DOE) advanced technology vehicle manufacturing loan (“ATVM”) programme to finance its US cobalt refinery.
Jervois believes its U.S. cobalt refinery would become a critical part of future American critical mineral supply chain resilience and independence from China. Jervois is experiencing increasing demand for foreign entity of concern compliant cobalt sulphate, as required under the US Inflation Reduction Act for US sold EVs to be eligible for buyer rebates.
