Investors
Investment case
Cobalt is an energy transition and technology-enabling metal used extensively in electronic devices and renewable energy storage. As a result, cobalt is an element that is critical to the global energy transition and has been recognised by the European Union as a “Strategic Raw Material” in accordance with the CRMA adopted by the European Council on 18 March 2024.
From Jan 2015 to Dec 2024, global cobalt demand more than doubled, increasing from approximately 94,000 tonnes to 239,000 tonnes per annum. Looking forward, Benchmark Minerals forecasts global cobalt demand to rise more sharply to 369,480 tonnes by 2031.
Whilst cobalt has multiple end-use applications, its key use is in the production of high-performance batteries, a core component of EVs, portable electronic devices and energy storage systems, as cobalt is known to significantly enhance the stability and performance of batteries. Its key beneficial qualities include a high melting point (thermal stability), ferromagnetism, as well as resistance to oxidation and corrosion.
The cobalt market has seen a significant ramp-up in supply from Indonesia and the Democratic Republic of Congo. According to Benchmark Minerals, global mined supply rose by more than 21% year-on-year in 2024, whilst global demand growth was close to 18% year-on-year.
Cobalt Holdings has entered into an agreement for the sale and purchase of cobalt with Glencore allowing it to purchase an initial quantity of cobalt worth US$200 million and will have the option to make five annual subsequent purchases of US$160 million, providing the Company with access to up to $1 billion of cobalt.
As one of the world’s leading industrial producers and traders of cobalt, Glencore is an ideal counterparty for the Company. Pursuant to the terms of the supply agreement with Glencore, the cobalt will be sourced from multiple suppliers of cobalt, reducing any exposure to individual assets.
Cobalt Holdings will only accept delivery of brands of cobalt which the London Metal Exchange has approved, or are acceptable in accordance with the Fastmarkets cobalt standard, in order to ensure quality and sustainability of supply. Glencore also undertakes audits to demonstrate responsible sourcing practices and transparency across the supply chain.
Cobalt Holdings has also agreed a supply agreement with Anchorage to supply a further 1,500 tonnes of cobalt to the Company in 2031.
Cobalt Holdings has been created to purchase and, potentially in the future, sell and trade cobalt in the spot market. As such, it is not involved in, nor does it control, the operational decisions relating to the mining or production of cobalt, cobalt mining projects or cobalt exploration efforts. The Company is, therefore, not directly exposed to the risks faced by mining operations or cobalt refining companies.
Cobalt Holdings has committed to store its cobalt in secure facilities in located in Belgium, Netherlands, Singapore and South Korea, reducing its geopolitical risk, thus creating a strategic stockpile of cobalt outside of China.
Cobalt Holdings’ management team has decades of combined commodities, trading, and financing experience.
Jake Greenberg, Chief Executive Officer of the Company, was part of the founding team of Yellow Cake plc, a publicly listed company that focuses on buying and holding physical uranium, aiming to realise returns on investment through the appreciation of its uranium holding and which has seen a material increase in value since its AIM IPO in 2018. Jake is also a founding member of 308 Services, an advisory company to Yellow Cake plc.
David Haughie, Chief Financial Officer of the Company, was a Managing Director and Head of Principal Investments for Mercuria Energy Group, from which he brings a significant global network across upstream, midstream, and downstream (wholesale) energy and mining.
Cobalt Holdings’ management team is deliberately lean in order to minimise corporate overhead costs and to maximise efficiency and returns for investors.
