The Cost of Setting Up a Cobalt Processing Plant

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From electric vehicles to energy storage systems, cobalt plays a vital role in powering the future. This trend has sparked investor interest in cobalt mining and processing operations, particularly the development of cobalt processing plants. But how much does it cost to build a cobalt processing plant? The answer depends on several factors, including the scale of the plant, ore type, processing technology, and location. 

 1. Small-Scale Cobalt Processing Plant (Pilot or Demo Plant)

Capacity: 100-200 tons per day (tpd)

Target Use: Pilot testing, research, small batch production

Typical Output: Cobalt concentrate or cobalt hydroxide

Estimated CAPEX: $2 million to $10 million

Estimated OPEX (Annual): $1 million to $10 million

Key Features: Compact footprint; Modular equipment; Basic automation; Often used to validate technology or process ores from artisanal/small mines

2. Medium-Scale Cobalt Processing Plant

Capacity: 200–500 tpd

Target Use: Commercial production, regional supply

Typical Output: Cobalt hydroxide or mixed hydroxide precipitate (MHP)

Estimated CAPEX: $12 million to $30 million

Estimated OPEX (Annual): $5 million to $12 million

Includes:

Crushing and grinding circuits

Flotation or leaching systems

Precipitation and filtration units

Tailings management

Environmental protection systems

Laboratory and control systems

3. Large-Scale Cobalt Processing Plant

Capacity: 1,000+ tpd

Target Use: Global supply chain integration, battery-grade cobalt production

Typical Output: Cobalt sulfate, cobalt metal

Estimated CAPEX: $50 million to $150 million+

Estimated OPEX (Annual): $15 million to $50 million+

Features:

Fully integrated processing (possibly including solvent extraction, crystallization, and refining)

High-pressure acid leach (HPAL) or advanced hydrometallurgy

Sophisticated automation and environmental compliance

On-site power generation and utilities

Best for vertically integrated EV supply chains, governments, or joint ventures targeting battery-grade cobalt markets.

Annual operating costs for a mid-scale plant can range from $5 million to $12 million, while large-scale plants may exceed $30 million per year.

1. Ore Type and Grade

Higher-grade ores reduce processing volume and cost

Complex ores (with arsenic or multiple metals) require advanced treatment

2. Processing Technology

Simpler processes (e.g., flotation) are cheaper but may yield lower purity

HPAL and solvent extraction are capital-intensive but yield battery-grade cobalt

3. Infrastructure Requirements

Remote sites need roads, power, water—adding millions to setup costs

4. Regulatory and Environmental Compliance

Stricter regions (e.g., EU, USA) require greater investment in environmental controls

5. Byproduct Recovery

Recovering copper, nickel, or rare earths improves project economics

Should You Build or Buy an Existing Plant?

Investors can either build a new cobalt processing plant (greenfield) or acquire/refurbish an existing one (brownfield).

Greenfield: Offers full customization, but higher time and cost

Brownfield: Faster setup, lower cost, but limited by existing design

Many companies also opt for modular plants, which reduce upfront costs and allow staged expansion.

The cost of setting up a cobalt processing plant ranges from a few million dollars for small-scale operations to over $100 million for large-scale, integrated facilities. While the investment is significant, so is the opportunity.

Driven by the EV revolution and energy storage boom, cobalt demand is set to remain strong for decades. With the right site, ore source, and processing technology, cobalt processing plants can deliver long-term, sustainable profits.

Whether you're a mining company, battery manufacturer, or strategic investor, entering the cobalt processing space today means positioning for the resource-driven economy of tomorrow.