In a decisive step towards reshaping Australia’s role in the global battery metals supply chain, Cobalt Blue Holdings has signed a binding pre-final investment decision (FID) consortium deed with Iwatani Australia, marking a significant advance in the development of the country’s first cobalt refinery.
The planned facility, to be built in Kwinana, Western Australia, is designed to produce high-purity cobalt sulphate for use in lithium-ion batteries — a strategic move that aligns with the Australian Government’s Critical Minerals Strategy. If the final investment decision is made by December 31, 2025, the refinery could become a cornerstone of Australia’s critical minerals infrastructure.
A Strategic Partnership Anchored in Battery Supply Chain Urgency
Under the agreement, Cobalt Blue and Iwatani will collaborate to push the Kwinana project through final engineering, technical, legal, and financial hurdles. While the deed does not commit either party to an immediate investment, it outlines a clear path to a joint venture — including a 70:30 ownership structure in favor of Cobalt Blue.
Key milestones outlined in the consortium deed include the completion of engineering and feasibility studies, successful production of cobalt samples that meet downstream customer specifications, and the establishment of formal agreements covering feedstock, intellectual property licensing, and long-term offtake arrangements.
Approval from the Foreign Investment Review Board (FIRB) will also be required before the project can progress past its current pre-FID status.
Domestic Processing for Global Reach
The Kwinana refinery is envisioned to process both third-party feedstock and mixed hydroxide precipitate from Cobalt Blue’s flagship Broken Hill Cobalt Project in New South Wales. The facility is expected to produce battery-grade cobalt sulphate — a chemical form critical to the manufacture of high-energy density lithium-ion batteries used in electric vehicles (EVs) and energy storage systems.
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“The Kwinana refinery represents a pivotal step in addressing the global cobalt supply gap and Australia’s need to capture more value within its own borders,” Cobalt Blue said in a statement. “This project is a key enabler of Australia’s Critical Minerals Strategy and is uniquely positioned to serve demand from international markets that are actively diversifying away from supply chains concentrated in one or two countries.”
Engineering Progress Already Underway
Cobalt Blue has already partnered with engineering services firm Tetra Tech to advance the refinery’s design, with 80 percent of the detailed plant engineering reported as completed. This level of readiness suggests that, once financing and approvals are in place, the project could move rapidly into construction and commissioning.
The refinery is intended to be built at the Kwinana industrial precinct, already home to a growing ecosystem of battery and clean energy infrastructure. The location provides access to existing utilities, port infrastructure, and proximity to Asian export markets — factors that could give the project a competitive edge.
Redefining Australia’s Role in Critical Mineral Supply Chains
The announcement comes amid growing pressure from governments and manufacturers worldwide to reduce dependence on cobalt sourced from the Democratic Republic of the Congo, where mining conditions and supply stability remain major concerns. By processing cobalt domestically, Australia not only secures a new revenue stream from value-added refining but also positions itself as a reliable supplier to U.S., European, and Asian markets.
For Iwatani Corporation, a Japanese industrial giant with growing interests in hydrogen and battery materials, the partnership deepens its strategic footprint in Australia’s resource sector.
“We see cobalt as a critical enabler of the energy transition, and partnering with Cobalt Blue gives us a foothold in one of the most stable and resource-rich jurisdictions globally,” said a spokesperson for Iwatani Australia.
Looking Ahead: A Path to Decision
The next 18 months will be crucial for the project, as both partners work through technical validation, financing plans, and regulatory compliance. If the final investment decision is reached as expected by year-end 2025, construction could begin shortly thereafter, with commercial operations potentially starting by 2027.
Industry observers are watching closely, noting that a successful FID and construction start would not only set a precedent for domestic cobalt refining in Australia but also catalyze further investment in downstream processing of other critical minerals such as nickel, lithium, and rare earths.
In an era where mineral independence is becoming a national priority across developed economies, the Kwinana cobalt refinery could mark a turning point — one that transforms Australia from a dig-and-ship nation to a sophisticated, value-adding player in the energy transition.
