First US commercial-scale solar-powered cobalt plant targets 70% water recycling

Reliable water supplies often determine whether large mineral processing projects move from planning to construction, especially in the arid US Southwest. A proposed cobalt processing plant in Arizona has now cleared that hurdle after drilling confirmed enough groundwater to support long-term operations, removing one of the project’s biggest technical uncertainties. The findings give engineers greater confidence as detailed design work, permitting, and financing efforts continue ahead of planned construction. EVelution Energy, which is developing a commercial-scale cobalt metal and cobalt sulfate processing facility in Yuma County, said hydrogeological testing confirmed aquifer zones beneath the site can supply the project’s expected water needs throughout its operating life. The study also suggests the resource could support future production expansion. Groundwater study completed Hydrogeological consultant BasinWells Associates supervised drilling to a depth of about 1,500 feet beneath the project site. Engineers carried out aquifer testing, groundwater sampling, and geological analysis before confirming sufficient groundwater capacity for the planned operation. Testing also showed elevated salinity in the groundwater. Although that limits conventional agricultural use without treatment, EVelution Energy plans to treat the water before using it in its industrial processes. The company expects the results to inform the final design of production wells, water treatment systems, and recycling infrastructure as work continues on its Bankable Feasibility Study. The project site sits outside one of Arizona’s Active Management Areas, where groundwater withdrawals face stricter regulation. Although the site’s wells must still comply with state registration and reporting requirements, they are not subject to volumetric pumping limits. EVelution Energy President and CEO Navaid Alam said confirming the groundwater supply removes another major development risk. “From the outset, we designed the project to combine domestic critical minerals processing with responsible environmental stewardship,” Alam said. He added that advanced water recycling systems and modern environmental controls remain central to the facility’s design. Closed-loop water design Engineers have designed the facility around a closed-loop water management system to reduce freshwater demand. The plant is expected to recycle about 70% of its process water and eliminate on-site process-water discharge. The design also avoids on-site tailings storage. Instead, licensed facilities will handle and dispose of process residues under applicable environmental regulations. Net freshwater demand is expected to average about 34 acre-feet each month, or roughly 408 acre-feet annually. According to the company, that is comparable to the annual irrigation needs of about 70 acres of farmland in Yuma County. Engineers also plan to use enclosed material handling systems and modern emissions controls. Together, those features aim to make the facility one of North America’s most water-efficient critical minerals processing plants. Construction plans advance The groundwater findings add another milestone for the roughly $450 million project. Construction of its planned 28-megawatt solar facility began in June 2026, ahead of work on the cobalt processing plant. EVelution Energy has also secured long-term cobalt hydroxide supply frameworks and advanced cobalt offtake discussions with strategic partners. Its financing strategy includes EB-5 subordinated debt, Qualified Opportunity Zone equity and proposed backing from the Export-Import Bank of the United States through its Make More in America initiative. Construction of the processing facility is expected to begin in early 2027, with commercial operations targeted for 2029. An independent economic impact study estimates the project could support more than 6,200 direct, indirect and induced jobs. It also projects about $1.2 billion in annual economic activity and approximately $326 million in annual household earnings, with most of those benefits expected to remain in Arizona, particularly in rural Yuma County. Recommended ArticlesGet the latest in engineering, tech, space & science - delivered daily to your inbox.Aamir is a seasoned tech journalist with experience at Exhibit Magazine, Republic World, and PR Newswire. With a deep love for all things tech and science, he has spent years decoding the latest innovations and exploring how they shape industries, lifestyles, and the future of humanity.