EVelution Energy Confirms Rural Opportunity Zone 2.0 Designation for Yuma Cobalt Project

IRS confirmation strengthens investment framework for the $450 million facility expected to support rural employment and domestic cobalt processing

YUMA, Ariz.--(BUSINESS WIRE)--EVelution Energy LLC ("EVelution Energy"), a U.S. critical minerals company developing America's first commercial-scale, solar-powered cobalt metal and cobalt sulfate processing facility, today announced that the U.S. Department of the Treasury and Internal Revenue Service (“IRS”) have confirmed the designation of the census tract encompassing its planned $450 million Yuma County facility as a rural Qualified Opportunity Zone under the federal Opportunity Zone 2.0 (“OZ 2.0”) program. Effective January 1, 2027, the 10-year designation strengthens the framework for qualifying long-term equity investment in the project.

The confirmation follows Arizona Governor Katie Hobbs’ July 7, 2026 nomination and the IRS announcement issued November 5, 2026, “Treasury, IRS Announce Opportunity Zones Designations for Over 6,500 Communities Across America” (IR-2026-132).

EVelution Energy is developing one of the few domestic critical minerals projects located in a designated Opportunity Zone in the United States. Its planned facility near Tacna is designed to produce approximately 7,000 metric tons of contained cobalt annually as battery-grade cobalt sulfate and alloy-grade cobalt metal for U.S. aerospace, defense, EV battery and advanced manufacturing industries.

“We thank Governor Hobbs and the Arizona Commerce Authority for advancing Arizona’s OZ 2.0 designations, and the IRS for their quick and efficient completion of the federal designation process,” said Gil Michel-Garcia, Executive Vice-President and General Counsel of EVelution Energy. “Industrial projects need capital that can remain committed through engineering, construction and the start of operations. This confirmation gives prospective investors greater certainty about the rural Opportunity Zone framework as we work to bring long-term industrial investment and skilled employment to Yuma County.”

Investment and Employment in Rural Yuma County

The financing strategy for the planned $450 million project includes Opportunity Zone, institutional and strategic equity, EB-5 subordinated debt and a proposed senior financing from the Export-Import Bank of the United States (“EXIM”). EXIM’s non-binding Letter of Interest contemplates a financing of up to $275 million, subject to due diligence, credit approval and definitive documentation. U.S. Citizenship and Immigration Services (“USCIS”) approved the project’s $64.8 million EB-5 subordinated debt offering on September 30, 2026.

According to the Company’s published economic impact estimates, the project is expected to generate approximately $1.2 billion in annual economic activity across Arizona and support more than 6,200 direct, indirect and induced jobs over the life of the project. Estimated annual household earnings total approximately $326 million. The majority of these benefits are expected to accrue within Arizona, particularly rural Yuma County. Employment impacts include jobs at the facility, among suppliers and service providers, and those supported by household spending.

The project’s long-term economic contribution is expected to extend beyond construction through recurring payroll, maintenance spending and purchases from regional suppliers. Establishing processing capacity near Tacna would also broaden the area’s employment base and create demand for technical skills that support industrial development.

Preparing Local Workers for Critical Minerals Processing

EVelution Energy is working with Arizona Western College (“AWC”) to develop the first Critical Minerals Hydrometallurgical Processing Training Program in the United States, expected to be offered at AWC’s Wellton Manufacturing Training Center in Yuma County. The program is intended to prepare local workers for skilled jobs in critical minerals processing and advanced manufacturing while supporting the facility’s long-term workforce requirements.

Enhanced Rural Opportunity Zone Investment Framework

The permanent Opportunity Zone Program is designed to encourage long-term private investment in economically disadvantaged communities. For qualifying investments made on or after January 1, 2027, OZ 2.0 provides a new framework that includes enhanced treatment for investments through qualified rural opportunity funds.

Deferral of eligible capital gains generally for up to 5 years from the date of a qualifying investment, subject to earlier inclusion events.

A basis increase equal to 30% of the deferred gain after a qualifying investment in a qualified rural opportunity fund has been held for at least 5 years, compared with the standard 10% increase.

Potential exclusion of qualifying investment appreciation after a holding period of at least 10 years, subject to applicable elections, statutory limits and other federal tax requirements.

The tract designation establishes the location’s status under the new program. Eligibility for particular tax benefits also depends on the fund structure, the investment and compliance with applicable federal tax requirements.

Advancing Domestic Cobalt Processing

Federal confirmation builds on existing zoning approvals and Special Use Permits, the start of construction of the project’s 28 MW solar facility in 2026 and a binding five-year offtake agreement with Mitsui covering substantially all planned cobalt metal production.

The facility is being designed to rank among the most water-efficient critical minerals processing facilities in North America, recycling approximately 70% of process water. Its design combines solar electricity and process heat, battery storage, enclosed materials handling and air filtration, with no process-water discharge or on-site tailings storage. Process residues would be disposed of off-site at a licensed facility. Construction of the cobalt processing facility is expected to commence in 2027, with commercial production targeted for 2029, subject to financing, permitting and execution of the remaining development work.

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This Press Release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under applicable securities laws.

About EVelution Energy

EVelution Energy LLC is a U.S. strategic critical minerals infrastructure company developing domestic processing capacity to strengthen America’s industrial competitiveness and national security. Its mission is to develop domestic critical minerals processing capabilities supporting America’s aerospace, defense, semiconductor, energy storage and advanced manufacturing industries.

The Company’s flagship project in Yuma County, Arizona, is being developed as America’s first commercial-scale, solar-powered cobalt sulfate and cobalt metal processing facility. Designed to produce approximately 7,000 metric tons of contained cobalt annually, the facility would supply battery-grade cobalt sulfate and alloy-grade cobalt metal, connecting global feedstock sources with domestic processing to serve American industrial demand and strategic supply requirements. The Company’s longer-term development strategy includes nickel processing and electronic-grade cobalt and nickel for semiconductor and other advanced manufacturing applications.

EVelution Energy’s development strategy combines engineering, infrastructure development and long-term commercial relationships with government cooperation and strategic engagement with Japanese and other allied industrial groups. These relationships are intended to support access to process technology, operating expertise, product qualification and industrial markets as the Company develops its broader critical minerals platform. Its financing strategy provides for institutional and strategic equity investment alongside project financing.

The facility’s design integrates solar generation, battery storage and a closed-loop water management system expected to recycle approximately 70% of process water. These features reflect the Company’s commitment to responsible engineering, resource efficiency and long-term industrial resilience.

Learn more at www.evelutionenergy.com.

U.S. “accredited investors” interested in investing in this project (Minimum Investment US$200,000) and benefitting from the substantial long-term tax advantages available under the now-permanent Opportunity Zone Program, can learn more at https://investors.evelutionenergy.com.

Cautionary Statement Concerning Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are not historical facts and EVelution Energy has based these statements on management’s current expectations and assumptions. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. These factors include, but are not limited to, (i) regulatory or policy changes affecting advanced manufacturing, defense procurement, or federal critical minerals initiatives and/or the funding available to the Export-Import Bank under the Make More in America initiative, (ii) potential construction delays, supply chain issues, governmental approvals and regulatory, environmental or other issues encountered in connection with the development and construction of the facility, (iii) growth in U.S. demand for defense, aerospace, and advanced manufacturing applications utilizing refined cobalt products, (iv) capital and credit market volatility, (v) local and global economic conditions, (vi) changes within USCIS relating to projects that qualify for priority treatment, and (vii) our future business development, results of operations and financial condition. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. All information provided in this press release is as of the date of this press release, and EVelution Energy undertakes no duty to update such information, except as required under applicable law.