Cobalt Blue Holdings Ltd (ASX:COB, OTC:CBBHF, FRA:COH) has advanced multiple workstreams across its refinery, upstream project and technology platform during the March 2026 quarter, with key milestones supporting its broader strategy to build an integrated cobalt supply chain.
"It was incredibly satisfying to receive confirmation during the quarter that samples of our cobalt sulphate met stringent trace metal purity and physical specifications. This is a major milestone as we continue to progress toward an FID decision on our proposed Kwinana Cobalt Refinery in Western Australia," CEO Andrew Tong said.
"We are equally excited to have been selected as the minerals processing partner for Glomar Minerals LLC to advance critical minerals processing within the United States from polymetallic nodules. This collaboration represents a significant opportunity to showcase our patented hydrometallurgical technology in support of a US-based processing solution for manganese and cobalt, and elevates our role in building new, reliable and secure critical minerals supply chains."
Kwinana Cobalt Refinery moving toward FID
The Kwinana Cobalt Refinery (KCR) remains the company’s flagship near-term development, with progress centred on achieving final investment decision (FID).
A major milestone was reached during the quarter with confirmation that cobalt sulphate samples produced at the Broken Hill Technology Centre met stringent pCAM (precursor cathode active material) specifications required by potential offtake partners. This validation supports commercial negotiations and de-risks product quality ahead of development.
The company continues to progress offtake discussions, with non-binding letters of intent covering about 70% of initial 3,000 tonnes per annum production capacity. Converting these into binding agreements remains a key next step toward FID.
Additional work is underway on feedstock supply and engineering, while financing remains contingent on offtake execution. Cobalt Blue is also seeking EU strategic project status and has lodged a patent application to strengthen its processing flowsheet.
Next steps: Finalise binding offtake agreements, progress financing and advance engineering ahead of a potential FID decision.
Broken Hill Cobalt Project reset with PFS
At the Broken Hill Cobalt Project (BHCP), the company is preparing to launch a preliminary feasibility study (PFS) aimed at optimising project scale and reducing upfront capital requirements.
The study will assess staged development pathways and target a minimum 10-year starter case, leveraging extensive prior work including the paused definitive feasibility study and pilot-scale processing programs. Completion is targeted for the December quarter of 2026.
Aerial view of bulk sample recovery operations at BHCP (circa July 2022).
Environmental approvals are also progressing, with the environmental impact statement around 80% complete and key technical studies largely advanced without identifying material constraints.
Next steps: Complete the PFS by Q4 2026 and progress development approvals, subject to study outcomes.
Technology Centre expands downstream opportunities
The Broken Hill Technology Centre (BHTC) continues to underpin both refinery development and new processing opportunities.
During the quarter, Cobalt Blue partnered with CSIRO to develop a process to recover and purify graphite from battery black mass, targeting an additional revenue stream from recycled lithium-ion batteries.
Battery black mass at BHTC.
The program will test multiple flowsheet pathways and is supported by grant funding, positioning the company to participate in battery recycling and circular economy supply chains.
Next steps: Advance graphite recovery testwork and continue evaluating alternative feedstocks, including battery black mass, for the refinery.
Halls Creek adds potential silver upside
At the Halls Creek Project, work focused on assessing silver recovery potential from the Onedin deposit.
A metallurgical test program is underway to evaluate silver extraction, with sampling delayed by weather but now scheduled for completion in the June quarter of 2026.
Silver is not currently included in the project’s financial model, despite an estimated 3.6 million ounces of contained silver, highlighting potential upside if recovery is proven.
Silver price (Source: Fastmarkets).
Next steps: Complete metallurgical testwork and assess the economic contribution of silver to the project.
Strategic US processing partnership adds growth pathway
Beyond its core assets, Cobalt Blue signed a consortium agreement with Glomar Minerals to advance a US-based polymetallic nodule processing facility.
The company will lead flowsheet development and feasibility studies over an 18–24 month period, leveraging its proprietary processing technology.
Next steps: Progress technical studies and secure funding and binding agreements for the consortium work program.
Outlook
With cobalt market conditions strengthening and supply constraints emerging, Cobalt Blue is advancing both near-term refinery development and longer-term upstream and processing opportunities.
Cobalt metal (standard grade) price (Source: Fastmarkets, Cobalt Blue Holdings).
Key catalysts over the coming periods include binding offtake agreements and FID progress at Kwinana, delivery of the Broken Hill PFS, and further validation of downstream processing technologies.