Cobalt Blue (COB)

NGG advised Cobalt Blue (COB) on commercial engagements in India

The sustained supply of mineral and metal commodities is critical for the transportation and manufacturing sectors. India's commitment to the UN Climate Change Conference (Paris, 2015) to reduce greenhouse gas emissions, alongside its ambition to achieve all-electric vehicles by 2030, highlighted the need for sustainable solutions in the transportation sector. The lithium-ion battery market in India is expected to grow at a CAGR of 34.8% from 2019 to 2024, and India's demand for lithium is projected to reach 350,000 tonnes per year. The demand for cobalt, a vital component in the production of lithium-ion batteries, is expected to increase by 60% between 2017 and 2025.

Cobalt Blue (COB), an ASX-listed Australian company, recognised the importance of cobalt as a commodity and aimed to become a leader in Australia’s domestic battery industry through its Broken Hill cobalt project in New South Wales. The project is designed to operate as both a cobalt mine and refinery, producing battery-ready cobalt sulphate, giving COB significant control over its resource.

COB has also developed a unique method of extracting cobalt from pyrite at a lower cost, attracting international interest from technology companies. Following the signing of the Australia-India Critical Materials MOU (including cobalt) in June 2020, the introduction of the Broken Hill Cobalt Project to India’s rapidly growing lithium-ion battery market was expected to foster trade and cooperation between the two nations, in line with India’s “Make in India” initiative.

NGG worked with COB to identify opportunities in India, engaging senior stakeholders in the automotive, chemicals, battery manufacturing, mining, and resources sectors. NGG facilitated negotiations on investment opportunities and offtake agreements.