Challenge
As demand soars for critical minerals to advance the global clean energy transition, building a reliable and diversified supply chain will be essential. Lithium, cobalt, and nickel are all needed to make the batteries used in electric vehicles and solar panels, and rare earth elements are used across the energy, technology, and national security sectors.
The United States is heavily reliant on imports of these minerals, and global supply chains are vulnerable to supply chain bottlenecks and geopolitical risk. Currently a small number of authoritarian governments control a substantial portion of the critical mineral mining and processing markets, including well over half the global capacity to process and refine cobalt, and to refine and produce rare earth elements.
Solution and Impact
DFC is investing equity in two projects that will help TechMet Limited increase production and strengthen the supply chains of critical minerals. In Brazil, DFC’s $30 million investment is supporting the development of a critical mineral mining facility that will produce nickel and cobalt suitable for lithium-ion batteries. And in South Africa, DFC’s $50 million equity investment will support TechMet’s investment in Phalaborwa Rare Earths, to support the construction of a processing plant for the extraction of rare earths oxides.
TechMet is a leading technology metals investment company with a portfolio of assets that produce, process, and recycle the critical metals used in energy, transportation, and related industries to diversity the global supply chain and incorporate more efficient and environmentally sensitive mining practices.
The South Africa project will reclaim gypsum from a legacy fertilizer mine for processing into rare earth oxides, avoiding the most carbon-intensive mining practices. The Brazil mine operates with a lower footprint relative to other mining operations, with low-carbon intensity and zero heat, pressure or discharge. DFC’s investment will support the ongoing development of new technology and processes that will advance more environmentally sensitive practices.
This project was profiled in 2024.