The US Department of Defense (DoD) has announced a $15 million funding agreement with Jervois Mining USA, a subsidiary of Jervois Mining Ltd (ASX:JRV), to conduct feasibility studies to expand cobalt extraction in Idaho.
The funding will enable Jervois to undertake mineral resource drilling that will accelerate the improved definition and expansion of currently known cobalt resources at its Idaho Cobalt Operations (ICO) and the adjacent Sunrise deposit and studies to assess a domestic US cobalt refinery, the DoD said in a statement.
The project is a critical step in the country's effort to decrease reliance on overseas sources of strategic and critical minerals, like cobalt, it added.
Cobalt is used in munitions and high-temperature aerospace alloys used by the DoD and has critical applications in high-capacity batteries for military and commercial electric vehicles, the department said.
"Investments such as these execute President Biden's focus on strengthening supply chains for critical minerals for large capacity batteries and are one step in the Defense Department's strategy for minerals and materials related to batteries,” the DoD’s Dr Laura Taylor-Kale commented.
Other companies that stand to benefit from the push by the US and Canada for more home-sourced critical materials like cobalt include Electra Battery Materials Corporation (TSX-V:ELBM, NASDAQ:ELBM), Canada Silver Cobalt Works Inc (TSX-V:CCW, OTCQB:CCWOF) and Corazon Mining Ltd (ASX:CZN, OTC:CRZNF).
Electra recently announced that it completed the first plant-scale recycling of black mass material in North America and confirmed the recovery of critical metals, including lithium, nickel, cobalt, copper, manganese and graphite, needed for the EV battery supply chain using its proprietary hydrometallurgical process.
Canada Silver Cobalt Works is a dual-focus precious metals and battery metals junior mining company with a valuable portfolio of critical energy metals projects based in safe and ecologically responsible jurisdictions.
Australia-listed Corazon Mining Ltd has also announced initial geophysical survey results that have defined three new priority drill targets at its 100%-owned flagship asset, the Lynn Lake Nickel-Copper-Cobalt Sulphide Project in Manitoba, Canada.
Contact the author at stephen.gunnion@proactiveinvestors.com