US Cobalt Refining: Startup Aims to Boost Domestic Production

The Geopolitical Challenges of Cobalt Supply

Cobalt is widely recognized as a premier material for battery technology globally. However, its geopolitical landscape presents significant concerns. The largest known reserves of this crucial metal are located in the Democratic Republic of the Congo, a region historically associated with human rights issues in its mining operations.

Furthermore, a substantial 72% of the world’s cobalt refining capacity is concentrated in China, creating a potential point of vulnerability for other nations.

Cobalt's Importance Beyond Electric Vehicles

While cobalt is a key component in many electric vehicles, its applications extend far beyond the automotive industry. The U.S. military relies heavily on cobalt for the lithium-ion batteries powering drones and various other essential devices.

It is also integral to the creation of alloys used in jet engines and the production of magnets vital for missile-guidance systems.

The Absence of Domestic Refining

Currently, the United States lacks any domestic cobalt refining capabilities. This absence significantly increases the reliance on foreign sources and heightens the risks for consumers of this critical material.

Concerns Over Supply Chain Control

“Everybody’s been worried about [China’s leverage], but now they’ve actually shown that they’ll cut off critical minerals,” stated John Busbee, co-founder and CEO of Xerion Advanced Battery Corp., in an interview with TechCrunch. “Everybody’s like, what do we do?”

Xerion's Innovative Solution

Busbee believes Xerion has developed a viable solution to address these concerns. The company has pioneered a novel technique for producing highly refined cobalt in a single step, utilizing electricity and a controlled application of heat.

Overcoming Adoption Barriers

Xerion had dedicated years to perfecting its technology for producing battery electrodes. However, the process differed substantially from established methods.

This difference created hesitation among battery manufacturers, who had already committed vast investments – totaling hundreds of billions of dollars – to constructing large-scale production facilities based on existing technologies.

The Molten Salt Process

Xerion’s innovative process involves plating metals onto electrodes. Electricity is used to extract these metals from a bath of molten salt.

During this process, the company simultaneously produces its specialized battery material on one electrode and exceptionally pure cobalt metal on the other.

Recognizing Cobalt's Strategic Value

“We always knew it was out there,” Busbee explained. “We always knew it was [a] critical mineral, and it’s something we thought about addressing later.”

Refocusing on Cobalt Production

However, the emergence of a global trade war prompted the company to prioritize cobalt production. Xerion is establishing a pilot-scale production facility in Dayton, Ohio, as exclusively reported to TechCrunch.

This facility will have an initial capacity to produce five metric tons of cobalt.

Meeting Military Demand

While this output represents a small fraction of global cobalt demand, it aligns with the relatively modest needs of the U.S. military. Approximately 5,000 to 10,000 metric tons of cobalt are required annually for the production of aerospace alloys, for instance.

Busbee indicated that Xerion’s next-generation plant is projected to yield 2,000 metric tons per year.

Cost Competitiveness

Even at the pilot scale, Busbee asserts that the company’s production costs are competitive. “Even at that scale, we’re already on even heel with China,” he stated.