Cobalt Blue confirms battery-grade cobalt sulphate specs as Kwinana refinery moves towards FID

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Cobalt Blue confirms battery-grade cobalt sulphate specs as Kwinana refinery moves towards FID

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Cobalt Blue confirms battery-grade cobalt sulfate specifications as Kwinana refinery heads to FID Proactive uses images from Shutterstock

Cobalt Blue Holdings Ltd (ASX:COB, OTC:CBBHF, FRA:COH) says its Kwinana cobalt refinery project in Western Australia has reached a significant technical milestone after confirming that samples of cobalt sulfate produced using its proprietary process meet strict specifications for battery precursor materials.

The company said the material produced at its Broken Hill Technology Center (BHTC) meets the physical and trace metal purity specifications required by precursor cathode active material (pCAM) customers – a key step towards commercial off-take agreements and a final investment decision (FID) on the refinery project.

Cobalt sulfate produced at BHTC.

Cobalt-containing pCAM is used in lithium-ion battery chemicals, including nickel-manganese-cobalt (NMC) and nickel-cobalt-aluminum (NCA), which are widely deployed in electric vehicles as well as energy storage and specialized electronics applications.

Only a limited number of proposed refineries outside of China have successfully produced cobalt sulfate to these specifications, placing the Kwinana project among a small group capable of supplying high-purity battery materials.

“We are making measurable progress for the Kwinana cobalt refinery,” said Dr. Andrew Tong, CEO of Cobalt Blue.

“Achieving cobalt sulfate specifications from potential pCAM customers and advancing removal discussions are critical steps toward FID,” he added. “At the same time, our continued optimization work at the Broken Hill Technology Center and our expansion into black mass assessment improves raw material optionality, strengthens project economics and further reduces development risks.

“These steps reinforce our broader growth strategy and position the company to take advantage of improving cobalt market conditions.” »

The Kwinana Cobalt Refinery is designed to become Australia’s first dedicated cobalt refinery, producing high purity cobalt sulfate for the lithium-ion battery industry as well as metallic cobalt for the defense and industrial markets.

Cobalt Blue progressed the project alongside partner Iwatani Australia under a binding pre-FID consortium deed signed in April 2025, which outlines the framework for jointly progressing the refinery towards development approval.

Several key conditions required before partners can make a final investment decision have already been met, including:

Obtaining a binding raw materials supply contract with Glencore in May 2025
Receipt of a Works Approval Permit from the Western Australian Government in September 2025
Production of cobalt sulfate samples meeting trace metal specifications using project design parameters

Other steps are underway, including converting letters of interest into binding purchase agreements and conducting technical studies and due diligence reviews. Financing arrangements and joint venture documentation are expected to follow once offtake agreements have progressed.

Since mid-2023, the company has invested more than $7 million to advance the development of the refinery.

As part of efforts to support Australia’s emerging battery materials supply chain, Cobalt Blue has also supplied high purity cobalt sulfate to the CSIRO for use in its cathode precursor production pilot plant in Western Australia.

The facility, operated in partnership with Curtin University and the Minerals Research Institute of Western Australia, is designed to test the production of battery cathode precursor materials from Australian raw materials.

The company has already delivered 4 kilograms of cobalt sulfate monohydrate for testing, contributing to the domestic development of pCAM and cathode active materials.

At the same time, Cobalt Blue has strengthened intellectual property protection around its refining scheme with a new Australian patent application covering an integrated process for producing high purity cobalt sulfate.

Beyond conventional raw materials, the company is also exploring battery recycling opportunities by assessing battery “black mass” – a mixture of metals recovered from end-of-life lithium-ion batteries.

Black battery mass.

As part of a new collaboration with the CSIRO, Cobalt Blue has begun designing a process to recover and purify black mass graphite to battery grade specifications.

Battery black mass typically contains 20-40% graphite as well as cobalt, nickel and other metals, offering the potential for multiple revenue streams and improved project profitability if successfully processed.

Black battery mass: typical contents and potential value streams.

The research program will be supported by a combination of CSIRO grants and corporate funding as Cobalt Blue continues to expand feedstock options for the Kwinana refinery.

Together, the technical qualification of its cobalt sulfate product, growing market engagement and continued process development mark continued progress towards a final investment decision on what could become a key link in Australia’s critical minerals supply chain.

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