Chilean Cobalt Expands NeoRe Project, Boosting Cobalt Output by 40%

Chilean Cobalt has officially initiated Phase II of its NeoRe project, marking a strategic expansion that will raise annual cobalt output from 8,500 to 12,000 metric tons by 2028. The project, located in the Atacama Region, is designed to leverage existing infrastructure and advanced extraction technologies to enhance efficiency and reduce environmental impact. The expansion includes the construction of a new hydrometallurgical processing plant and increased exploration of high-grade cobalt-copper ore zones. This development comes amid rising global demand for battery-grade cobalt, driven by electric vehicle production and critical defense systems requiring high-performance materials. With the NeoRe project now positioned to supply approximately 5% of global cobalt demand, the expansion supports supply chain resilience in key markets including the U.S., EU, and China. The company has committed $320 million in capital expenditures through 2027, with financing secured through a mix of equity and long-term project loans. Initial production is expected to begin in Q3 2026, with full ramp-up by late 2027. The project is projected to generate over 280 direct jobs and contribute an estimated $180 million in annual tax revenue to Chilean federal and regional governments. The expansion has already influenced commodity markets, with LCO=F (London Cobalt Futures) rising 3.4% and CL=F (Crude Oil) showing a modest uptick, reflecting investor confidence in stable cobalt supply. The XME index, tracking mining equities, gained 2.1% in early trading on the news, underscoring market optimism.