Cobalt Blue Secures Works Approval, Targets $120M Kwinana Refinery Investment by 2025

Environmental Approval Clears Major Hurdle

Cobalt Blue Holdings Limited (ASX, COB) has taken a significant step forward in its ambition to establish Australia’s first dedicated cobalt refinery with the receipt of a works approval from Western Australia’s Department of Water and Environmental Regulation. This regulatory green light permits the construction and operation of the Kwinana Cobalt Refinery (KCR) at the Doral Fused Materials site in East Rockingham, marking a critical milestone in the project’s development timeline.

The approval follows a thorough environmental assessment, ensuring that potential emissions and discharges from the refinery will be managed under strict controls. This regulatory endorsement is a key condition precedent for Cobalt Blue and its project partner, Iwatani Australia, to proceed towards a final investment decision (FID) expected by the end of 2025.

Strategic Partnership and Project Progress

The collaboration with Iwatani Australia, a specialist in industrial gas and energy solutions, strengthens the project’s technical and commercial foundation. Together, they have secured binding agreements, feedstock contracts with Glencore sourced from the Democratic Republic of Congo, and appointed Tetra Tech Coffey as the engineering partner, all of which underpin the refinery’s development.

CEO Dr Andrew Tong highlighted the timing of the approval as particularly fortuitous amid rising global demand for critical minerals processing capacity. The Kwinana refinery is designed to produce battery-grade cobalt sulphate essential for electric vehicle supply chains, alongside high-purity cobalt metal for industrial and defense applications. This dual output positions the refinery as a cornerstone in Australia’s critical minerals strategy and the broader Future Made in Australia agenda.

De-risking Australia’s Cobalt Supply Chain

With Australia currently supplying just 6% of global cobalt but forecasted to meet 60% of demand by 2030, the Kwinana Cobalt Refinery offers a strategic advantage by providing midstream processing capabilities that reduce reliance on foreign supply chains dominated by China. By bringing refining capacity online ahead of the Broken Hill Cobalt Project mine development, Cobalt Blue aims to de-risk its mining operations and enhance supply chain security.

The company is also exploring feedstock diversification, including recycled battery materials and cobalt byproducts from Australian nickel and copper operations, which could further strengthen the refinery’s resilience and sustainability credentials.

Next Steps and Market Implications

Following the works approval, Cobalt Blue is advancing the remaining technical, regulatory, and commercial milestones necessary for the FID. This includes submitting development consent applications to local authorities and securing operational permits. The company’s progress will be closely watched by investors and industry stakeholders eager to see Australia expand its footprint in the critical minerals processing sector.

As global demand for cobalt intensifies, the Kwinana Cobalt Refinery could become a pivotal asset in securing diversified, sovereign supply chains for battery and defense industries worldwide.