US critical minerals company EVelution Energy reports that a hydrogeological programme has confirmed the availability of sufficient groundwater resources to support the planned operating requirements of its proposed cobalt processing facility in Yuma County, Arizona.

The company says the confirmation of substantial groundwater resources represents another significant milestone in the development of its $450-million cobalt processing facility project, which is intended to strengthen domestic critical minerals supply chains while creating significant economic opportunities in Yuma County.

EVelution Energy explains that these findings remove another significant development risk and further advance the project’s engineering, permitting, financing and construction readiness, thereby supporting the potential future expansion of the cobalt processing facility beyond its initial planned production capacity.

Hydrogeological consultant BasinWells Associates was tasked with overseeing the hydrogeological programme. Under its supervision, exploratory boring was drilled to a depth of about 457 m.

As a result of this drilling activity, BasinWells confirmed the presence of aquifer zones beneath the project site with hydrogeological characteristics indicating substantial groundwater-bearing capacity capable of supporting the planned operating requirements of the proposed facility.

The consultancy also contends that the data supports the conclusion that groundwater resources underlying the property are sufficient to bolster the anticipated operating requirements of the planned facility throughout its expected operating life, including potential future increases in production capacity.

EVelution points out that the consultancy’s water quality testing has indicated that the groundwater encountered within the target aquifer zones contain elevated salinity levels and will require treatment prior to conventional agricultural use.

Conversely, EVelution’s planned cobalt processing operations are expected to incorporate water treatment systems capable of using groundwater in a productive manner as it will otherwise have limited agricultural value in its untreated state.

This facility is expected to incorporate about 70% recycling and reuse of process water, no on-site process water discharge, no on-site tailings storage or disposal and the treatment and off-site disposal of process residues at licensed facilities in accordance with applicable environmental requirements.

Additionally, EVelution notes that this facility is expected to operate with substantially lower net freshwater requirements than its total process-water demand, with net freshwater consumption expected to average about 42 000 m³ a month, or about 503 000 m³ a year.

Based on average irrigation water-use rates in Yuma County, the company notes that this is roughly equal to the yearly water requirements of about 283 000 m² of irrigated farmland.

“The successful confirmation of substantial groundwater resources beneath the project site removes another critical development risk and brings us one step closer to [the] construction of the first solar-powered commercial-scale cobalt processing facility in the US.

“From the outset, we have designed this project to combine domestic critical minerals processing with responsible environmental stewardship through advanced water treatment, extensive water recycling, closed-loop operations and modern environmental controls,” says EVelution president and CEO Navaid Alam.

Prior to the completion of the groundwater programme, EVelution notes, the project had already achieved several milestones including the start of construction of the project’s 28 MW solar energy facility in June; securing long-term cobalt hydroxide feedstock supply frameworks; and advancing long-term cobalt offtake arrangements with global strategic partners.

The company says the project is expected to support more than 6 200 direct, indirect and induced jobs, generate about $1.2-billion in yearly economic activity and contribute about $326-million in yearly household earnings, with the majority of these benefits expected to accrue in Arizona, particularly in rural Yuma County.

Construction of the cobalt processing facility is expected to begin in early 2027, with commercial operations targeted for 2029.