Missouri company makes a big bet on cobalt, turning lead mine into green jobs

Missouri is poised to play a big role in the electric vehicle revolution, and the action is centered just outside a small town in the foothills of the St. Francois Mountains, two hours south of St. Louis. “You’re going to see a potentially billion-dollar enterprise in Fredericktown, Missouri,” says Darren Chapman, deputy commercial director for U.S. Strategic Metals.

The Fredericktown area has been intertwined with mining since at least 1717, when the French first began digging for lead there. In the 1930s, National Lead stood up a mine about two miles south of the town to aid in the war effort. They mined a lot of lead and pulled a lot of cobalt out of the ground along with it. The lead was put to work defeating the Axis Powers. The cobalt was left lying there for decades in what is called the mine’s “tailings,” essentially what’s left over from the ore after the valuable material has been separated. 

Sixty years later, the mine was a Superfund site when Stacy Hastie, CEO of Environmental Operations, arrived to do a cleanup—and realized the potential. Cobalt is an essential component of lithium-ion batteries, with a spike in demand being driven by the rise of electric vehicles, and Missouri is believed to be one of the few parts of the continental U.S. with significant reserves. U.S. Strategic Metals has spent $265 million setting up operations in the area since Hastie co-founded the company in 2018. They also expect a $400 million loan from the U.S. Export-Import Bank, the official export credit agency of the federal government. 

Commercial director Michael Hollomon says the company initially planned to send the cobalt to Canada for processing. “And then we realized, why would we do that? They use pyrometallurgy in Canada, which releases gas into the environment. It’s not the best way to do it.” Instead, a new processing plant on site will use hydrometallurgy. “We’re bringing high-tech green jobs to the middle of Missouri,” says Hollomon.

Why It Matters: The vast majority of cobalt is now mined in the Congo, where child labor is common, and processed in China. “Right now, if you buy an Apple iPhone, you’re supporting China, and you’re probably supporting child labor. It’s just that simple,” says Hollomon. The operation in Fredericktown will not only allow cobalt mining and production to stay in the U.S., but also create a cobalt that is much more ethically sourced. The company has been vocal about their commitment to being as environmentally friendly as possible. As evidence, they point to the cleanup and remediation they’ve done at the former lead mine. 

What’s Next: Hollomon says the Fredericktown-area processing facility will be up and running in 2026, initially processing cobalt mined from elsewhere and then from the tailings leftover from the previous lead operation. According to Chapman, the plant will produce 11,031 metric tons of cobalt each year after a short ramp-up period, with significant amounts of lithium and nickel as well. U.S. Strategic Metals will eventually employ approximately 1,700 people. (Fredericktown’s population is around 4,400.)

Not the Only Player in Town: U.S. Strategic Metals isn’t the only business adjacent to the burgeoning E.V. industry to have set up shop around Fredericktown. Last November, Critical Mineral Recovery held a launch party for their 225,000-square-foot lithium-ion battery recycling facility, which for most of the past year has employed 75 people. The facility took in used batteries and extracted the valuable minerals from them, a business that was positioned to boom as the early generations of eclectic vehicles reach the end of their lives. 

Late last month, however, the massive building became engulfed in flames, and has been described as a “total loss.” No one was injured, and the EPA is monitoring the environmental impact of the fire. There is no official word as of right now on plans to reopen.