ASX-listed Cobalt Blue Holdings has signed a binding pre-final investment decision (pre-FID) consortium deed with Iwatani Australia (IWA) to progress development of the Kwinana cobalt refinery, which is expected to become Australia’s first facility producing battery-grade cobalt sulphate.

The agreement outlines key conditions the parties must meet before each seeks board approval to proceed with the project, including completion of technical studies, due diligence reviews, and the establishment of feedstock supply and offtake agreements. 

FIDs are targeted by December 31, 2025.

If the project proceeds, it is expected that Kwinana will produce high-quality, battery-grade cobalt sulphate for the global battery materials supply chain. Base case production capacity is estimated at 3 000 t/y of cobalt, either as sulphate or metal.

Cobalt Blue and Iwatani have been working together since December 2023 on project development, including technical due diligence and commercial partner engagement. The parties now commit to exclusive negotiations until a final decision is made or the deed is terminated.

“Subject to a positive FID being made by both parties, the parties intend to promptly form an incorporated joint venture (with COB to hold 70% and IWA 30%), to build, commission and operate KCR,” the statement read.

The refinery is planned for Iwatani’s site in the Kwinana-Rockingham industrial precinct south of Perth, offering proximity to Fremantle port and co-location advantages with Iwatani’s fused zirconia operation. Cobalt Blue has appointed Tetra Tech for detailed engineering and Green Values to manage permitting.

The company highlighted its strict environmental, social and governance and traceability standards, noting it will only work with suppliers that meet its ethical sourcing requirements and do not contravene US Foreign Entities of Concern rules.

“Cobalt Blue (and as a result, the project) is committed to sourcing feedstock exclusively from counterparties who adhere to its ESG policies and traceability practices,” the company stated. “The parties will only enter into contract arrangements with producers who don’t contravene US Foreign Entities of Concern definitions and practices and abide by laws both in their country of operations as well as in their country of origin.”

The refinery is aligned with Australia’s Critical Minerals Strategy and could serve as a key enabler in developing local precursor cathode active material, or pCAM, manufacturing capacity.

Further, Cobalt Blue said it planned to seek shareholder approval to change its name to Core Blue Minerals, reflecting its broader ambitions across cobalt/nickel refining, mine waste reprocessing, and strategic projects in Western Australia and New South Wales.