Qatar has invested in a US-supported mineral fund project aimed at weakening China’s dominant position in the critical mineral sector for clean energy. This marks the first cooperation of its kind between Western countries and Gulf states.
The economic coercion by the CCP has pushed Western countries to continually seek to reduce reliance on China for critical resources. Now, the West is expanding cooperation in the mining sector, including rare earth and other key minerals, to Gulf countries. The Qatar Investment Authority, a sovereign wealth fund, will become one of the largest investors in TechMet.
TechMet, a mining investment company headquartered in Dublin and supported by the US International Development Finance Corporation (DFC), specializes in the extraction of metals such as lithium, nickel, cobalt, and rare earth elements needed for the transition to clean energy.
On Wednesday, TechMet announced that the Qatar Investment Authority (QIA) has committed an initial investment of $180 million, reflecting QIA’s dedication to ensuring responsible sourcing of critical mineral supplies.
In a press release, TechMet stated, “This investment aligns with QIA’s ambition for broad investments in the industrial sector, such as the critical mineral domain, which is essential to drive the clean energy transition and help meet the increasing global demand for sustainable energy solutions.”
The press release emphasized that this investment embodies QIA’s mission to construct projects in the critical mineral supply chain.
These funds will be used to develop TechMet’s existing assets and continue building an investment portfolio through strategic projects to expand the production and refining of target critical minerals, including lithium, nickel, cobalt, and rare earth elements.
Rare earth, lithium, and cobalt are minerals essential for electric vehicle production. The US and its Western allies are engaging in geopolitical competition in the electric vehicle sector, striving to lessen reliance on China for these critical minerals.
A study released by Goldman Sachs last year revealed that at least 75% of batteries are manufactured in China. The study also noted that China holds an 85%-90% share of global rare earth element mining to refining, and refines 68% of global cobalt, 65% of nickel, and 60% of lithium needed for electric vehicle batteries.
Brian Menell, the founder, chairman, and CEO of TechMet, stated in the press release, “The investment by the Qatar Investment Authority further highlights TechMet’s position as a global leading critical mineral investment company. With major sovereign investors joining hands with the US government, we accelerate our ability to expand and diversify our investment portfolio and create significant value in the critical mineral supply chain. We also look forward to closely collaborating with the Qatar Investment Authority to explore more future opportunities.”
This $180 million investment is part of the sixth round of $300 million financing, with advisory provided by Rothschild Bank, propelling TechMet’s valuation well over $1 billion.
The press release also disclosed that the US International Development Finance Corporation agreed to invest $50 million in this financing round. Other investors and family offices raised an additional $70 million, including S2G Ventures, a venture capital group co-founded by members of the Walton family, founders of Walmart.
Earlier this year in February, at the 2024 Qatar Network Summit, Menell mentioned the “transformation” of Gulf countries, including Qatar, achieving economic diversification at national and private levels, including investments in the global critical mineral supply chain.
“The Gulf region is very interested in this, and it will have a significant impact on our industry,” he said at the time.