The U.S. government acquires an equity stake in TechMet Ltd., a battery-metals company. This move risks the dependence on China for a primary material used in electric vehicles.
The Dublin-based company confirmed that the U.S. International Development Finance Corporation (DFC) has invested $25 million in TechMet to support the development of Brazilian cobalt and nickel mine. Cobalt is a key ingredient in cathodes of the batteries of many electric-vehicles and China controls most of its refining capacity.
The CEO of the government agency, Adam Boehler, specified in TechMet’s statement that the investment in crucial materials for innovative technology help in the development and enhances the US foreign policy. The move comes days after the United States President, Donald Trump, signed an executive order to extend the domestic production of rare-earth minerals, a sector that China dominates. This marks as one more example of the United States’ efforts to decrease the reliability of its biggest geopolitical enemy for key materials. These materials are required for magnets in a wide range of products including electric vehicles.
TechMet’s chief investments include a Rwandan tin and tungsten mine, lithium-ion battery recycling plants in the U.S. and Canada, and a U.S. vanadium facility. Brian Menell, TechMet CEO highlighted that most metals targeted by the enterprise come under China’s influence at some phase of the global supply chain.
Menell stated that TechMet signifies a real opportunity for its investors to profit from the forthcoming supply-demand dislocation for key metals and invest in proper sources of supply that are associated with U.S. interests, thus playing a role in restoring the supply-chain imbalance.
The funds will be utilized to start the initial commercial production of Brazilian Nickel Plc, one of TechMet’s core investments. It will be an affordable nickel-cobalt manufacturer in Piaui, in north-eastern Brazil.
TechMet stated that while China has reached a position of incredible supply chain dominance, the US’ continued reliability on imports from the supply of chief metals signifies a noteworthy threat to the long-term competitiveness of the American industry.