Ireland-based critical minerals investment company TechMet announced Tuesday the closure of a $200 million equity fundraising round, putting the firm on track to cross a $1 billion valuation, Kallanish finds. 

The US government-backed start-up will deploy the funds across its 10-project portfolio to expand extraction, processing, recycling and manufacturing capacities, it said in a statement. Founded in 2017, TechMet invests in businesses focused on nickel, lithium and other critical minerals. In the past year, it invested over $180m in critical minerals companies, including nickel and cobalt developer Brazilian Nickel; North America’s largest lithium-ion battery recycling company Li-Cycle Corp; UK lithium explorer Cornish Lithium; and US lithium technology developer Energy Source Minerals.

“As national security challenges escalate, supply of critical metals is a crucial area of concern,” warns Mike Mullen, chairman of TechMet’s advisory board. The firm’s investments are expected to address the anticipated shortages in the mineral supply by the end of this decade. The International Energy Agency (IEA) projects the demand for critical minerals to more than double by 2030.

Company’s ceo Brian Menell notes the critical minerals sector has been supported by recent US legislation and supply chain investments by major automakers. “The EU has also announced its long-awaited Critical Raw Materials Act and, like the UK, is seeking to strengthen supply chains,” he adds. “However, there is much more work to be done, particularly in the UK and Europe, if we hope to adequately feed the production of batteries, EVs, wind turbines, and other clean energy systems.”

The US International Development Finance Corporation (DFC) invested $25m in the firm in 2020, followed by a further $30m investment last year. Other key TechMet shareholders include the US government development bank, Swiss-based commodity trader Mercuria Energy, and London-based asset manager Lansdowne Partners. The fresh fundraising puts TechMet on track to become one of a few mining unicorns.