Cobalt Blue Holdings Ltd (ASX:COB, OTC:CBBHF) is well-placed to provide one of the first Australian-domiciled responses to the US Inflation Reduction Act (IRA) and the EU Critical Raw Minerals Act (CRMA) with its proposed Cobalt-Nickel Refinery at Kwinana in Western Australia.
The proposed refinery that COB plans to build in the Kwinana Industrial Area, south of Perth, is expected to be a key building block for the supply of responsibly sourced battery raw materials, empowering Allied Nations in the global energy transition.
READ: Cobalt Blue set to play key role in critical metals strategy in Western Australia and nationally
First production is estimated in early 2026 with the proposed plant to process feedstock from domestic and international sources for export to global markets, primarily Japan, Europe and North America.
Among the domestic sources will be Cobalt Blue’s Broken Hill Cobalt Project (BHCP) in the Far West of New South Wales.
WA support
With Western Australia’s aim to be a key supplier of responsibly sourced battery metals to meet soaring global demand for Electric Vehicles (EVs) and Energy Storage Systems (ESS) in mind, State Premier Roger Cook has provided a letter of support for the refinery.
This letter acknowledged the refinery’s alignment with Western Australia's Battery and Critical Minerals Strategy and potential role in further solidifying the State's position as a national leader in battery material production.
At the time, Cobalt Blue CEO Joe Kaderavek said: “We are thrilled to receive this support for our Cobalt-Nickel Refinery Project from the Premier of Western Australia.
“Having government support and strong test work results de-risk the Cobalt Nickel Refinery Project”.
COB participation
COB has provided feedback to the WA Battery and Critical Minerals Strategy and participated in a stakeholder forum last month hosted by Premier Cook.
Cobalt Blue is seeking to build the refinery to produce responsibly sourced cobalt and nickel sulphate (CoSO4) for the Electric Vehicle (EV) lithium-ion battery market.
READ: Cobalt Blue has Iwatani as potential partner for Broken Hill Cobalt Project
The company, which is planning to raise funding for the staged development of the refinery, has executed a non-binding agreement with Iwatani Australia Pty Ltd as a potential partner to advance the refinery.
Iwatani Australia is a subsidiary of Iwatani Corporation, a leading Japanese multinational commodity trading company.
Push for Allied Nation supply
COB’s timely development also aligns with the growing push for a secure Allied Nation supply chain as envisioned by the recently enacted IRA and CRMA.
These ground-breaking legislations offer significant incentives for responsibly sourced materials, reshaping the global critical minerals landscape.
The refinery aims to have the capacity to produce cobalt and nickel sulphate at an annual rate of 3,000 tonnes of cobalt metal equivalent and 1,000 tonnes of nickel metal equivalent) in Stage One.