Xerion Advanced Battery Corp., a US-based startup, has made a significant breakthrough in cobalt refining technology, potentially reducing the country's reliance on China for the critical mineral. Cobalt, a key component in lithium-ion batteries used in electric vehicles (EVs) and military technology, has long been a concern due to China's dominance in its refining and the associated human rights abuses in the Democratic Republic of Congo, where most of the world's cobalt reserves are located.

The US military, in particular, is heavily dependent on cobalt for its lithium-ion batteries, which power drones and other devices, as well as for the alloys used in jet engines and magnets for missile guidance systems. However, the lack of cobalt refineries in the US has made the country vulnerable to supply chain disruptions. The recent trade war has only exacerbated these concerns, with China demonstrating its willingness to cut off critical mineral exports.

Xerion's innovative solution involves a single-step process that uses electricity and heat to produce highly refined cobalt. The company's technology, initially developed for producing electrodes for batteries, was found to also produce incredibly pure cobalt metal as a byproduct. According to John Busbee, Xerion's co-founder and CEO, the company had always been aware of the importance of addressing the cobalt supply chain issue but had focused on perfecting its battery material technology first.

With the global trade war escalating, Xerion has refocused its efforts on cobalt refining, announcing plans to open a pilot-scale production facility in Dayton, Ohio. The facility will have the capacity to produce five metric tons of cobalt, a small but significant step towards reducing US dependence on China. While this is still a fraction of global cobalt demand, it is notable that the US military's needs are relatively smaller, with only around 5,000 to 10,000 metric tons of cobalt required for aerospace alloys, for example.

Busbee emphasized that Xerion's next-generation plant will have the capacity to produce 2,000 metric tons of cobalt per year, making it a more significant player in the market. Moreover, the company's cost-competitive pricing, even at the pilot scale, puts it on par with China, according to Busbee.

The implications of Xerion's breakthrough are far-reaching, with the potential to reduce the US military's reliance on China for critical minerals and mitigate the risks associated with supply chain disruptions. As the global demand for EVs and clean energy technologies continues to grow, the development of domestic cobalt refining capabilities will become increasingly important for energy security and national security.

In the broader context, Xerion's innovation highlights the need for continued investment in clean energy technologies and the development of sustainable supply chains. As the world transitions to a low-carbon economy, the importance of securing critical minerals and reducing dependence on geopolitically sensitive regions will only continue to grow.