Cobalt is among the most crucial components for battery production worldwide, yet its supply chain is fraught with geopolitical complications. The largest global reserves sit in the Democratic Republic of Congo, an area persistently troubled by human rights concerns, while the refining sector is heavily dominated by China, which controls roughly 72% of the refined cobalt market. The United States has yet to establish a domestic cobalt refining capability, a critical gap given that cobalt is essential not only for electric vehicle batteries but also for military applications including aerospace alloys, drone batteries, jet engines, and missile guidance system magnets.
The absence of U.S.-based cobalt refining has heightened strategic vulnerabilities, a problem made increasingly evident amid intensifying global trade disputes. Traditionally, cobalt processing is a multi-step operation, involving complex metallurgical processes. However, a startup named Xerion Advanced Battery Corp. claims it has devised an innovative solution, enabling the production of highly refined cobalt metal using electricity and minimal heat, wrapped neatly into a single, streamlined step.
Xerion initially developed its technology for manufacturing battery electrodes but faced resistance from battery manufacturers already deeply invested in more conventional production methods. The company’s approach involves immersing electrodes in a bath of molten salt and then employing electricity to deposit high-quality metals directly onto these electrodes. While one electrode produces premium-quality battery materials, the other electrode yields exceptionally pure cobalt metal.
“We were always aware cobalt was critical,” said Xerion’s co-founder and CEO John Busbee, “but our plan was initially to tackle it down the line.” The global trade environment, however, quickly sharpened the company’s focus. With the escalating supply chain risks underscored by China’s demonstrated willingness to restrict exports of critical minerals, Xerion is now prioritizing cobalt production.
The company recently revealed its plans to establish a pilot-scale facility in Dayton, Ohio, initially set to produce approximately five metric tons of cobalt per year. Although this volume represents only a minimal fraction of global cobalt demand, it aligns well with specialized U.S. military needs, which usually do not surpass 5,000 to 10,000 metric tons annually for aerospace alloys and similar applications. Xerion envisions its subsequent, scaled-up facility to dramatically expand capacity, targeting around 2,000 metric tons of refined cobalt per year.
Remarkably, despite the modest scale of its initial production facility, Busbee maintains that Xerion’s process is already competitive on cost, placing it on equal footing with current Chinese suppliers. As global trade tensions and supply chain concerns continue to mount, the significance of establishing secure, domestic cobalt refining capacity has never been clearer.
