Cobalt Blue Holdings Ltd (ASX:COB, OTC:CBBHF) continues to demonstrate the advantages of its Broken Hill Cobalt Project (BHCP) Pilot Plant in the far west of New South Wales, Australia, with the first cobalt sulphate samples produced.
This follows the successful production of Mixed Hydroxide Product (MHP) samples from the plant in Broken Hill with both products being part of the company’s global sampling program.
Positive feedback has been received from MHP sample partners and the company is confident the cobalt sulphate samples will also draw a positive response when partners receive the first samples in early November.
For cathode precursor industry
The MHP to cobalt sulphate refinery is aiming to produce high-purity cobalt sulphate heptahydrate crystals, suitable for direct use as a raw material into the cathode precursor industry.
Demand is growing for this high-value product with cobalt sulphate heptahydrate currently commanding a premium of 10–20% over MHP.
Filtering MHP precipitate at the Pilot Plant.
Globally in 2020, about 25% of cobalt production was refined into cobalt sulphate for use in the production of electrical vehicle batteries. This is expected to grow to >50% of global cobalt production by the end of 2025.
Demonstration Plant next
The delivery of cobalt sulphate samples to partners will mark the formal end of Pilot Plant operations and COB is well underway with planning and procurement for the subsequent larger-scale Demonstration Plant, with supporting bulk sample extraction and fieldwork planned across the summer months.
Transition to the Demonstration Plant remains on target with continuous operations targeted during the first quarter of 2022.
Reflecting the progress COB has made, the share price has been steadily improving from A$0.235 at the market close on August 23 to A$0.47 today, a 6.82% gain on yesterday’s close while the company market cap pre-open was approximately A$131.3 million.
Positive feedback
During the September quarter, COB fielded positive feedback from MHP samples dispatched to sample partners. A number of these are shortlisted for large sample batches of up to 100 kilograms to be supplied from the Demonstration Plant in 2022.
Solvent extraction separation of cobalt.
These large samples are required for acceptance testing and production of laboratory-scale batteries.
COB expects to update the market with an overall commercial cobalt sulphate specification in due course.
Product specifications will be discussed with cobalt sample partners in the first instance and COB expects iterative development of specifications to match individual battery maker needs precisely.
Cathode precursor pilot plant
In further validation of COB’s integrated cobalt supply strategy, cobalt sulphate from the BHCP will be used in the A$18 million Future Battery Industries – Cooperative Research Centre (FBI-CRC) cathode precursor pilot plant in 2022.
COB has been a member of the Australian Government’s FBI-CRC since its inception in 2019.
One of this body’s key projects is the Cathode Precursor Pilot Plant in Perth and the FBI-CRC recently signed contracts worth A$18 million with 19 project participants for the design and commissioning of the plant.
The 19 consortium participants include international organisations, smaller enterprises, research participants and the Minerals Research Institute of Western Australia on behalf of the WA Government.
Cobalt sulphate from BHCP
COB is a consortium member and one of its key contributions is the provision of cobalt sulphate from the Broken Hill Cobalt Project Pilot/Demonstration Plant. The company’s participation in the project is being led by executive manager Dr Andrew Tong.
Installation and commissioning of the Cathode Precursor Production Pilot Plant is due to take place between January and March 2022 with an 18-month pilot campaign period to follow.
This project will use locally sourced materials to produce current generation NCM 811 and NCM 622 cathode chemistries used in electric vehicles.
Australia currently exports the main commodities used in batteries (lithium, nickel, manganese and cobalt) in the form of mineral concentrates, with very little value-added from the manufacturing of lithium-ion battery materials retained in Australia.
Commercial option
COB believes this presents a commercial option with its BHCP set to mine and refine an ethical supply of cobalt to meet growing global demand.
“It’s exciting for Cobalt Blue to be part of this cooperative project that will enable Australia to expand its presence in the battery value chain,” said Dr Tong.
“This investment in refining battery chemicals and manufacturing active materials has the potential to create a strong domestic market for our project in Broken Hill and to Australia’s mining and manufacturing sectors aligned with batteries.”