Glencore, US Strategic Metals enter partnership with Chilean Cobalt

Chilean Cobalt has entered into a non-binding strategic partnership with Glencore AG and US Strategic Metals to explore domestic United States downstream processing of cobalt and copper intermediate products from C3’s La Cobaltera project in Chile. On July 8, 2024, C3 announced a non-binding Letter of Intent with Glencore regarding an offtake agreement for cobalt and copper intermediate products, as well as a strategic partnership, for C3’s La Cobaltera project in northern Chile. Today’s announcement adds a non-binding processing LOI with USSM that builds upon this, with a three-way strategic partnership exploring collaboration on domestic US processing solutions with the objective of establishing an Americas-centric cobalt supply chain, connecting C3’s La Cobaltera cobalt-copper project in Chile with USSM’s integrated critical minerals processing site in Missouri, USA – which may include development of a dedicated processing line for La Cobaltera concentrate at USSM’s site. This is expected to strengthen US critical minerals supply chains while providing a sustainable and traceable source of raw materials for the growing domestic lithium-ion battery manufacturing capacity and high-performance metal alloy markets. C3 and Glencore anticipate that the majority or full spectrum of cobalt and copper intermediate product stream will be shipped into the US and/or US Free Trade Agreement countries. This Agreement works to satisfy C3 and USSM’s own conditions precedent regarding both parties’ potential strategic project financing from the Export-Import Bank of the United States. This Agreement will be subject to conditions precedent and contain standard termination rights, which are typical for an agreement and project of this nature. In any definitive agreement reached, all parties intend to include agreed upon responsible sourcing and sustainability provisions.