Cobalt Holdings has confirmed plans to list on the London Stock Exchange in June through a $230 million initial public offering, marking a rare new entry for investors seeking direct exposure to the price of cobalt. Trading is expected to begin on or around June 10, with both institutional and UK retail investors able to participate.
Glencore and Anchorage have committed as cornerstone investors, with Glencore investing $24.3 million for a post-IPO stake of about 10%, and Anchorage investing $23 million for a 9.5% holding. The company, which does not mine or process cobalt but instead purchases and stores the metal, aims to offer a pure-play vehicle for those looking to track cobalt prices.
Cobalt Holdings has secured a six-year supply agreement with Glencore for up to $1 billion worth of cobalt, including an initial $200 million purchase at a discount to the recent spot price. The agreement ensures access to premium-grade cobalt for the company and its shareholders. A separate deal with Anchorage could see Cobalt Holdings acquire up to 1,500 tonnes of cobalt in 2031.
The IPO comes at a time when cobalt prices have fallen sharply due to oversupply, dropping from nearly $44 per pound in 2022 to around $11 per pound in 2025. Despite this, Cobalt Holdings argues that low prices present an opportunity to stockpile the metal, anticipating that the ongoing energy transition and new export restrictions from the Democratic Republic of Congo will support future demand and price recovery.
Cobalt demand has more than doubled in the last decade, driven by its use in batteries for electric vehicles, portable electronics, and energy storage systems. However, the market remains volatile, with recent oversupply and shifting battery technologies influencing prices and investment strategies.
Cobalt Holdings' listing is expected to test investor appetite for new commodity-focused vehicles on the London market, which has seen mixed activity in recent years. The company’s model is lean, outsourcing logistics and storage to minimize costs and maximize returns for shareholders.
