Chilean Cobalt Boosts NeoRe Project with $120M Investment in Southern Chile Expansion

Chilean Cobalt has unveiled a significant expansion of its NeoRe project in the Aysén Region of southern Chile, marking one of the largest recent developments in the region’s critical minerals sector. The company is investing $120 million in infrastructure upgrades, drilling programs, and process optimization to increase the project’s output capacity from 8,500 to 12,000 metric tons of refined cobalt per year by 2028. This expansion positions NeoRe as a key contributor to the global battery metal supply chain amid rising demand from EV manufacturers and energy storage developers. The project’s enhanced capacity is expected to support the production of over 1.2 million EV batteries annually, based on average cobalt content per battery. This development comes as international demand for cobalt continues to grow, with the International Energy Agency projecting a 70% increase in cobalt use by 2030 to meet clean energy targets. Chilean Cobalt’s operations also align with Chile’s national strategy to become a leading supplier of battery-grade minerals, leveraging the country’s rich geology and stable regulatory environment. Market indicators reflect growing confidence in the project’s viability. LME_CO, the London Metal Exchange’s cobalt benchmark, has traded above $28 per pound in early 2026, up 18% year-to-date, driven by supply concerns and increased industrial demand. Meanwhile, CL=F, the crude oil futures contract, has shown reduced volatility, signaling a shift in investor sentiment toward long-term industrial metals. The stock of Rio Tinto (RIO.L), a major player in global mining and a strategic partner in cobalt supply chains, rose 3.2% following the announcement, reflecting broader market optimism. The expansion will create over 250 direct jobs and stimulate regional development in Aysén, including upgrades to transportation and power infrastructure. Environmental and social impact assessments have been completed, with commitments to zero-discharge water systems and community consultation programs. The project is expected to deliver first production from the expanded phase in Q2 2027.