Government investment in US mining company helps boost supply of nickel and cobalt for electric cars
O US International Development Finance Corp. (DFC) made a $25 million investment in TechMet, a private equity firm with a portfolio of projects that produce, process and recycle metals linked to the production of electric vehicles (EVs), renewable energy systems and energy storage, the investment will be in the mining industry of Piauí.
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The focus of investments will be Piauí
The funds will be used to bring into initial commercial production one of TechMet's key investments, Brazilian Nickel Plc, which will be a low-cost nickel-cobalt producer in Piauí, in northeastern Brazil.
Piauí is a lateritic nickel heap leach project that has a combined measured and indicated JORC resource of 72 Mt at 1% Ni and 0,05% Co. Brazilian Nickel had already completed a large-scale demonstration of heap leaching, purification and recovery of nickel and cobalt from Piauí ore.
Expansion in the National Mining Industry
The DFC investment, part of TechMet's Round 2 capital increase, follows in the footsteps of US President Donald Trump signing an Executive Order and declaring a National Emergency to expand the national mining industry, support mining jobs, alleviate unnecessary permit delays and reduce the US dependence on China for essential minerals.
Nickel and cobalt are two key ingredients in the production of lithium-ion batteries that power EVs and provide renewable energy storage. As battery technologies transform the global mobility and energy landscape, demand growth for these metals is expected to accelerate.
TechMet said, “While China has built an overwhelming dominance position in the supply chain, the United States' continued reliance on imports to supply essential metals poses a significant threat to the long-term competitiveness of American industry. TechMet, aligned with US interests, is committed to developing an independent supply of these essential metals. ”
