Australia's Cobalt Blue has signed a three-year deal with commodities giant Glencore to supply up to half of the feedstock required for its Kwinana Cobalt Refinery (KCR).

Under the agreement, Glencore will provide at least 3 750 t of cobalt hydroxide – sourced from its Kamoto Copper Company (KCC) and Mutanda Mining operations in the Democratic Republic of Congo (DRC) – to the KCR facility. The refinery, being developed by Cobalt Blue (COB) and Japan’s Iwatani Corporation in Western Australia, is slated to become the country’s first cobalt sulphate plant for lithium-ion battery markets and defence-grade metal production.

“We are thrilled to formalise a relationship with Glencore,” said COB CEO Andrew Tong. “Locking in at least 50% of KCR’s feedstock requirements is a significant step in derisking the project that brings us closer to FID [final investment decision]."

The agreement is seen as a critical step forward for the A$560-million project, which is expected to deliver battery-grade cobalt sulphate and cobalt metal products for use in electric vehicles (EV), energy storage systems and industrial applications. Feedstock volumes under the contract will scale up from 750 t in the first year of operations to 1 500 t in the second and third years.

“Developing a commercial partnership with one of the world’s largest diversified miners helps solidify COB’s position as a participant in the global cobalt industry,” Tong added. “This relationship will also enable COB to play a strategically important role in building new battery and critical minerals supply chains among like-minded countries.”

The Glencore deal also underscores growing momentum behind Australia’s push to localise critical minerals processing and reduce reliance on global supply chains . The Kwinana facility has been designated a key enabler of Australia’s Critical Minerals Strategy, with capacity to supply raw materials to the cathode precursor segment of the EV battery chain.

The refinery is being built on Iwatani’s site within the Kwinana-Rockingham industrial precinct, adjacent to existing infrastructure and close to the Fremantle port. Engineering work is being led by Tetra Tech, with Green Values managing environmental approvals.

While COB says it prioritises sourcing feedstock from Australian producers, current market conditions have prompted it to pursue international supply. The company remains in talks with both local and global suppliers to meet the remaining 50% of KCR’s requirements.

Meanwhile, COB has emphasised its commitment to sourcing only from producers aligned with international environmental, social and governance standards, including the Organisation for Economic Cooperation and Development guidelines for responsible mineral sourcing from conflict-affected and high-risk areas. Glencore’s KCC and Mutanda operations are both accredited with The Copper Mark and Responsible Minerals Assurance Process conformance.