Jervois Global Limited has announced that its Bankable Feasibility Study (BFS) for a planned refinery expansion at the Kokkola Industrial Park has been redirected to a study for a greenfield cobalt refinery in the United States.
Based on the new site, Jervois said the BFS is now expected to be completed.
A BFS flowsheet for an initial refinery capacity of 6,000 metric tonnes per year of contained cobalt in sulphate, the physical form necessary for the battery industry, including electric vehicles (EVs), has been developed by the technical team at Jervois Finland and the engineering and consulting firm AFRY Finland Oy.
Jervois USA’s team will provide additional specialised support for the United States, and AFRY will continue to provide professional refinery expertise and leadership from Finland. BFS in essential areas like logistics, utilities, building preparation, and environment and permitting. Jervois Finland will still manage the BFS.
The US Inflation Reduction Act of 2022 (IRA) is a federal legislation that encourages domestic energy production, promotes renewable energy, and supports the US’ transition from fossil fuels. It includes $390 billion in funding to assist the US climate and clean energy policy.
The IRA is designed to boost domestic cobalt refining and recycling in the US, with Jervois’s prospective cobalt refinery benefiting from a 10% operating cost credit. Despite Europe’s new 2023 European Union Critical Raw Materials Act and Net Zero Industry Act, this constitutes a significant competitive advantage against facilities not based in the United States. Jervois is also encouraged by conversations with the Department of Energy (DOE) about loan and grant programs to fund refinery building.
Jervois is working to formalise a US$15 million grant from the US Department of Defense (DOD) to fund the US cobalt refinery BFS and proposed a drilling program at ICO. If Finland and/or the European Union provide financial support similar to the US, the Kokkola expansion BFS can be reinitiated by Jervois Finland and AFRY. Jervois has visibility on future cobalt demand requirements in the US and Europe that can support construction and commissioning of both facilities.
Jervois is negotiating with manufacturers in the US and Europe to finalise long-term cobalt sulphate contracts by 2023. Jervois expects refinery expansions to be supported by government and/or customer assistance.
