en.Wedoany.com Reported - U.S. critical minerals company EVelution Energy LLC is developing the nation's first commercial-scale solar-powered cobalt metal and cobalt sulfate processing facility. Located in Yuma County, Arizona, the project has a planned investment of $450 million. Arizona Governor Katie Hobbs has nominated the census tract where the facility is located for subsequent designation as a rural qualified opportunity zone under the federal "Opportunity Zone 2.0" (OZ 2.0) program.
Upon certification by the U.S. Department of the Treasury, the nomination is expected to make the project eligible for enhanced rural opportunity zone tax benefits starting January 1, 2027, thereby strengthening EVelution Energy's long-term investment framework as it advances permitting, financing, and construction. This nomination is seen as a significant milestone in reducing the project's systemic risk.
Navaid Alam, President and CEO of EVelution Energy, expressed gratitude for the continued support from Governor Hobbs, the Arizona Commerce Authority, the Greater Yuma Economic Development Corporation, and local elected leadership. He stated that this nomination strengthens the long-term investment framework for the first commercial-scale solar-powered cobalt processing facility in the U.S. and advances a project aimed at supporting U.S. defense readiness, domestic manufacturing, and the resilience of the critical minerals supply chain.
The "Opportunity Zone 2.0" program, effective January 1, 2027, introduces enhanced tax incentives on top of the original Opportunity Zone framework, designed to attract long-term private investment into economically distressed communities, particularly rural areas. For industrial projects of national significance, these incentives aim to encourage additional private capital, job creation, and long-term economic development. Investments made before January 1, 2027, remain eligible under the existing OZ 1.0 framework. Enhanced incentives offered under OZ 2.0 include: a rolling five-year capital gains deferral; potential permanent exclusion of appreciation on qualified opportunity zone investments held for the required period; a 30% increase in the tax basis for investments in qualified rural opportunity zones; accelerated depreciation deductions; and potential exclusion of depreciation recapture upon disposition of qualified investments.
EVelution Energy's $450 million project in Yuma County is expected to generate approximately $1.2 billion in annual economic activity in Arizona and support over 6,200 direct, indirect, and induced jobs over the project's lifecycle. Located in a qualified rural opportunity zone, the project aims to bring long-term industrial investment, skilled employment, and supply chain activity to the local area. EVelution Energy is partnering with Arizona Western College (AWC) to develop the nation's first critical minerals hydrometallurgical processing training program, expected to be conducted at AWC's Welton Manufacturing Training Center in Yuma County, aimed at preparing local workers for skilled positions in critical minerals processing and advanced manufacturing.
The facility is designed to minimize its environmental footprint through on-site solar power generation and battery energy storage, closed-loop water management, no on-site tailings storage, and off-site disposal of process residues at permitted facilities. The closed-loop system design can recover approximately 70% of process water, making this project one of the most water-efficient critical minerals processing facilities under development in North America.
Previously, the project has obtained zoning approvals and special use permits for the planned cobalt processing facility and the project's 28-megawatt solar and battery energy storage facility; established strategic raw material supply frameworks and long-term commercial offtake arrangements; and continues to advance export credit agency financing plans. Construction of the project's 28-megawatt solar facility has commenced. Construction of the planned cobalt processing facility is expected to begin in early 2027, with a target completion date by the end of 2029.
