Highlights

• Cobalt Blue pivots its Broken Hill facility toward battery recycling

• Black mass processing supports future refinery feedstock needs

• Partnerships strengthen Australia’s emerging battery materials ecosystem

Cobalt Blue strengthens its role in Australia’s battery materials industry by shifting Broken Hill operations toward black mass recycling, reinforcing future refinery plans and supporting the nation’s growing circular economy.

Cobalt Blue Holdings Ltd (ASX:COB) has taken a major strategic step toward strengthening Australia’s battery materials capability by shifting its Broken Hill Technology Centre (BHTC) toward black mass recycling. The move represents a significant realignment, transforming the facility from a project-focused testwork centre into a specialised hub for processing recycled lithium-ion battery materials.

Black mass — the concentrated powder derived from crushed lithium-ion batteries — contains valuable minerals including cobalt, nickel, manganese, lithium and graphite. As global demand for rechargeable technologies grows, Australia is pushing to build stronger domestic recycling infrastructure and reduce reliance on imported intermediates. Cobalt Blue’s new direction places the company at the centre of this national effort.

Why Has Cobalt Blue Shifted to Black Mass Recycling?

The pivot follows a year of extensive testwork evaluating black mass samples from multiple sources. These studies confirmed the suitability of BHTC's processing infrastructure for consistent recovery of key battery metals.

By transitioning into commercial recycling activities, Cobalt Blue expects to generate early-stage revenue while also developing a reliable, local source of feedstock for its planned Kwinana Cobalt Refinery (KCR).
The shift enhances supply chain resilience and reduces dependence on imported cobalt intermediates — an increasingly important factor as global competition for critical minerals intensifies.

What Role Will Broken Hill Play in National Recycling Efforts?

Broken Hill has a long history as an innovation centre in Australian mining, making it a fitting location for the country’s next phase of battery materials development. The BHTC facility features advanced circuits for pressure oxidation, precipitation, and refining — capabilities well suited for black mass processing.

Local support for the transition highlights its potential economic and employment benefits for the region. With rising volumes of battery waste nationwide, Broken Hill is positioned to become a key strategic node in Australia’s emerging recycling network.

How Does BHTC Support the Kwinana Cobalt Refinery?

Since 2021, Cobalt Blue has made significant investments to validate processing flowsheets for both the Broken Hill Cobalt Project and the Kwinana Cobalt Refinery.
Recent bench-scale testwork using cobalt hydroxide and cobalt–nickel sulphide confirmed the ability to produce battery-grade cobalt sulphate and high-purity cobalt metal.

As the company progresses toward a final investment decision for the refinery, BHTC’s new focus will be to determine whether recycled black mass can supplement early feedstock requirements. This integration would align recycling activities with downstream refining, creating a full-circle battery materials pathway within Australia.

What Products Could the Recycling Flowsheet Deliver?

Ongoing optimisation trials aim to recover multiple battery-critical materials from black mass, including:

• cobalt metal

• nickel hydroxide

• manganese sulphate

• potential lithium and graphite by-products

If successful, BHTC would produce saleable materials directly from recycled batteries, demonstrating a complete, scalable model for domestic battery resource recovery.

How Are Partnerships Supporting the Strategy?

Cobalt Blue’s recycling ambitions are reinforced by collaborations across the battery supply chain.

EcoBatt Collaboration

A memorandum of understanding with EcoBatt supports processing trials using black mass from EcoBatt’s Victorian facility — one of the nation’s largest battery collection and sorting networks.

Successful testwork could lead to a commercial supply agreement, ensuring steady recycled feedstock.

Hartree Partners Engagement

A non-binding letter of intent with Hartree Partners covers potential early-stage purchases of cobalt metal produced from black mass.
This strengthens downstream optionality and supports commercial readiness for future BHTC output.

Together, these partnerships build confidence around market access, feedstock supply and early product demand.

Why Is Black Mass So Important?

Black mass has become a globally recognised commodity as nations work to build closed-loop battery material ecosystems.
Its value lies in its concentration of high-demand metals and the ability to leach and refine it using established hydrometallurgical processes.

Environmentally, recycling black mass reduces landfill waste, cuts the need for additional mining, and supports circular economy principles.
Yet only a small portion of Australia’s lithium-ion battery waste is currently recycled — leaving significant room for improvement.

Cobalt Blue’s recycling initiative aims to help bridge this gap and set the foundation for a sustainable, domestic battery recycling industry.