Cobalt Blue forms partnership with Iwatani to develop BHCP

• Cobalt Blue (ASX:COB) has taken a step forward in the development of its BHCP, entering a non-binding heads of agreement (HoA) with Iwatani Corporation
• The partnership aims to align BHCP with the Kwinana Refinery Project
• Cobalt Blue will undergo a strategic review, focusing on a condensed, higher-margin project due to current metal pricing forecasts
• The company believes the cobalt market will tighten in the long term, supporting higher sustainable metal pricing
• Cobalt Blue last traded at 15 cents

Cobalt Blue (ASX:COB) has taken a step forward in the development of its Broken Hill Cobalt Project (BHCP), entering a non-binding heads of agreement (HoA) with Iwatani Corporation.

The HoA outlines a shared strategic vision for both BHCP and the Kwinana Refinery project, providing a pathway to a binding agreement between the parties.

Under the agreement, Iwatani is positioned as a potential partner for both the Refinery and BHCP, aligning the projects for a staged expansion.

“Cobalt Blue is excited to have a potential partner of the calibre of Iwatani Corporation,” COB CEO Joe Kaderavek said.

“We share a common view of Australia as a supplier to the global battery industry and look forward to developing both projects with Iwatani.”

This collaboration aims to commence and expand refinery production, initially using third-party feedstock, potentially followed by BHCP-sourced cobalt intermediate feedstock.

The integrated BHCP and Refinery have the potential to become a Top 10 global cobalt refinery.

Despite challenges, Cobalt Blue remains optimistic about the cobalt market, anticipating a tightening of the market and improved fundamentals in the long term.

The partnership aims to finalise binding agreements by April 30, 2026, covering the establishment of a joint venture company, investment agreements, product marketing, and offtake arrangements.

Cobalt Blue last traded at 15 cents.