Eurasian Resources Group Inks MoU to Supply Cobalt to Japanese market with Mechema and Marubeni

.The agreement with Mechema and Marubeni will explore the potential supply of cobalt hydroxide (up to 3ktCo per annum), and the production and marketing of cobalt sulfate

.The potential cooperation could increase cobalt supply alternatives for Japanese market, which is showing substantial growth in demand due to global surge in EV adoption

.It also supports ERG’s ambition to supply its cobalt to all key regions that will produce main portion of battery materials, one of which will be Japanese suppy chain

Eurasian Resources Group (“ERG” or “The Group”), a leading diversified natural resources group headquartered in Luxembourg, has signed a Memorandum of Understanding (MoU) with Mechema Chemicals International Corp (“Mechema”), a battery raw material producer headquartered in Taiwan, and Marubeni Corporation (“Marubeni”),  a major integrated trading and investment business conglomerate headquartered in Japan, to explore a potential transaction involving the supply and refining of cobalt hydroxide, and the sale, distribution and marketing of cobalt sulphate.

Under the MoU, ERG, Mechema and Marubeni will study potential cooperation to develop alternative cobalt supply chain for Japanese market.

Specifically, Mechema will conduct a feasibility study into the construction of a new cobalt refining plant, supplied by cobalt hydroxide produced by ERG, while Marubeni will study ability to place produced cobalt sulfate into Japanese market.

Under the auspices of the Parties’ agreement, ERG desires to supply cobalt hydroxide from ERG’s flagship operation, Metalkol, in the Democratic Republic of the Congo (DRC), to potential customers in Japanese market.

Cobalt produced at Metalkol is quality assured by the Clean Cobalt & Copper Framework, underwritten by independent auditors PwC.

In October 2023, Metalkol achieved ISO 9001:2015 certification for copper cathode and cobalt hydroxide production – globally recognised as the most comprehensive quality management system (QMS).

Benedikt Sobotka, CEO of ERG and Co-Chair of the GBA, said:“The signing of this MoU underscores ERG’s role as a global cobalt player and willingness to have strategic presence in all key battery materials supply chains.

Japan is one of the leaders in the production of battery materials and clean energy technologies and the supply of cobalt to its market by ERG will support the green energy transition and the global agenda to reach net zero by 2050. We look forward at ERG to working with Marubeni and Mechema on this new opportunity”.