Cobalt Holdings sets stage for landmark London IPO with $230m global offer and pure-play cobalt strategy

Why Is Cobalt Holdings Going Public on the London Stock Exchange?

Cobalt Holdings plc has formally declared its intention to proceed with a public listing on the Main Market of the London Stock Exchange, with Admission targeted for June 2025. The company plans to raise approximately US$230 million through a Global Offer of 90 million shares, providing investors with a rare opportunity to gain direct, pure-play exposure to the price of cobalt—a critical strategic metal for the energy transition. This IPO represents a significant milestone, not only for the company but also for investors seeking to capitalise on forecasted demand for cobalt in electric vehicle (EV) batteries, energy storage systems, and advanced electronics.

Unlike traditional mining companies, Cobalt Holdings does not engage in exploration or mining activities. Instead, it will acquire and hold physical cobalt as a strategic reserve, leveraging an outsourced, low-cost operating model to mitigate overheads and maximise investor returns. The proceeds from the IPO will be primarily used to purchase 6,000 tonnes of cobalt—around 33% of the forecasted 2025 global surplus—under a US$1 billion supply contract with Glencore International AG.

What Makes Cobalt Holdings Unique in the Commodity Investment Landscape?

Cobalt Holdings distinguishes itself by offering public equity investors a unique investment structure that provides direct exposure to the cobalt price, minus the operational risks typical of mining ventures. With no mining liabilities, the business operates more like a strategic commodity holding vehicle. This is particularly relevant in today’s market, where investors are increasingly cautious about ESG risks and geopolitical instability tied to mineral extraction.

The company’s strategy is informed by the successful blueprint of Yellow Cake plc, which offers investors exposure to uranium prices through physical stockpiling. Jake Greenberg, the CEO of Cobalt Holdings and part of Yellow Cake’s founding team, believes this model is ideal for strategic commodities such as cobalt, which is critical for battery technology. His view is echoed in recent projections from Benchmark Mineral Intelligence, which expects global cobalt demand to rise from 239,000 tonnes in 2024 to 369,480 tonnes by 2031—driven largely by EV battery demand and energy storage applications.

How Is Cobalt Holdings Positioned for the Energy Transition?

Cobalt has been officially recognised by the European Union as a “Strategic Raw Material” under the Critical Raw Materials Act (CRMA). It plays a central role in the global energy transition, not just for its thermal stability and corrosion resistance, but more crucially for its capacity to enhance lithium-ion battery performance. This demand profile aligns with net-zero mandates across major economies and bolsters the strategic rationale behind Cobalt Holdings’ long-term storage model.

The current oversupply of cobalt—attributable to increased production from Indonesia and the Democratic Republic of Congo—presents what Greenberg describes as a “window of opportunity.” With cobalt prices trading below long-term historical averages, Cobalt Holdings seeks to accumulate a substantial inventory while costs remain depressed, anticipating a demand-driven price recovery by 2031. Benchmark Mineral Intelligence forecasts a supply deficit of up to 45,756 tonnes by 2035, highlighting the metal’s tightening fundamentals.

Who Are the Major Stakeholders Backing Cobalt Holdings?

Cobalt Holdings has secured two heavyweight cornerstone investors: Glencore and Anchorage Structured Commodities Advisor. Glencore will contribute approximately US$24.3 million, equating to a 10% stake, while Anchorage will invest roughly US$23 million for a 9.5% interest. These cornerstone commitments not only de-risk the offer but also validate the credibility of the company’s long-term strategy.

In addition to equity investments, Anchorage will provide a NAV correction facility of up to US$23 million to support share buybacks should the stock price fall below 95% of the net asset value of the company’s cobalt holdings. Furthermore, Anchorage will offer debt financing to support a 2031 cobalt purchase agreement for up to 1,500 tonnes, reinforcing long-term supply and liquidity.

What Is the Role of Glencore in Cobalt Holdings’ Supply Chain?

Glencore’s involvement in Cobalt Holdings is multifaceted. Beyond its cornerstone investment, the commodities giant has signed a six-year supply contract guaranteeing cobalt deliveries worth up to US$1 billion. The initial tranche includes a discounted US$200 million purchase for 6,000 tonnes of cobalt. Subsequent annual purchases are pegged at US$160 million, with flexibility for Cobalt Holdings to buy additional volumes on the spot market.

Glencore’s role as a diversified global producer and trader reduces supply chain concentration risks. The cobalt sourced under the agreement will be quality-certified to meet London Metal Exchange and Fastmarkets standards, ensuring liquidity and compliance with responsible sourcing practices. This mitigates concerns over ESG compliance—an increasingly important metric for institutional investors in metals and mining.

How Will Cobalt Holdings Mitigate Geopolitical and Operational Risks?

One of Cobalt Holdings’ primary selling points is its avoidance of operational exposure to cobalt mining and refining. Instead, the company focuses solely on storage and long-term holding. This approach reduces exposure to geopolitical uncertainties in regions like the DRC, while also eliminating the environmental and regulatory liabilities associated with extraction and processing.

The company’s cobalt stock will be held in secure warehouses in Belgium, the Netherlands, Singapore, and South Korea—locations chosen to spread geopolitical risk and support global accessibility. Insurance coverage is in place to protect these physical assets under all business conditions, including transit and warehousing. The company has also outsourced technical advisory and logistics services to Cobalt Metal Management (CMM), a specialised firm with deep expertise in metals trading and storage.

Who Are the Key People Behind Cobalt Holdings?

Cobalt Holdings is led by a seasoned executive team with a strong pedigree in commodities trading and strategic metals investing. Jake Greenberg, the CEO, brings experience from Yellow Cake plc and has held senior roles at Bank of America Merrill Lynch. David Haughie, the CFO, was previously with Mercuria Energy Group and advises several clean-energy startups.

Ahead of Admission, the Board will be expanded to include four independent non-executive directors: Josephine Bush, Andreas Hansson, Nicolaos Paraskevas, and Sarah Maryssael. Each of these individuals brings deep expertise across sustainability, mining, finance, and battery technology. Their collective experience spans Tesla, Arcadium Lithium, Rio Tinto, SoftBank, and Glencore, positioning the Board to guide Cobalt Holdings through evolving regulatory, ESG, and capital market landscapes.

What Are the Terms and Structure of the Global Offer?

The planned IPO will target institutional investors outside the U.S. under Regulation S, as well as qualified institutional buyers in the U.S. under Rule 144A. Retail investors in the UK will also be able to participate via RetailBook, creating a broader investor base and enhancing share liquidity.

Citigroup Global Markets Limited has been appointed as Sole Sponsor, Sole Global Coordinator, and Joint Bookrunner, with Canaccord Genuity acting as Joint Bookrunner. The gross proceeds of US$230 million from the Global Offer will be allocated primarily to cobalt purchases, with US$203.5 million earmarked for the Initial Purchase from Glencore. Remaining funds will support working capital, logistics, legal and banking fees, and operational expansion.

How Is the Market Responding Ahead of the Cobalt Holdings IPO?

Early sentiment around the Cobalt Holdings IPO has been cautiously optimistic, particularly given its alignment with broader decarbonisation trends and the structural shift towards EV adoption. Institutional interest is reportedly strong, especially in light of strategic endorsements from Glencore and Anchorage.

Investor appetite is being driven by the recognition that cobalt’s role in the global battery supply chain is not easily replaceable despite ongoing research into alternatives. The expected deficit by the early 2030s, coupled with a current oversupply environment, has positioned the IPO as an early entry point for long-term price arbitrage.

If successful, Cobalt Holdings will become a critical price-discovery vehicle for cobalt investors, akin to what Yellow Cake achieved for uranium. Analyst sentiment suggests a “buy-on-listing” outlook among funds with a focus on critical materials, with hedge funds expected to monitor NAV discounts for opportunistic entries.

Will Cobalt Holdings Reshape Cobalt Investing?

Cobalt Holdings plc’s model offers a modernised approach to strategic metals investing, removing operational friction and allowing investors to engage in commodity exposure through equity markets. With a disciplined acquisition strategy, cornerstone backing, and a globally diversified logistics footprint, the company is poised to fill a significant gap in the market.

The timing, amid depressed cobalt prices and rising downstream demand from EVs and energy storage, enhances the appeal. For investors seeking thematic exposure to the energy transition without the volatility of mining equities, Cobalt Holdings may well establish itself as the go-to listed vehicle for cobalt price participation.