The investment firm TechMet is exploring new additions to its portfolio while expressing concern that Europe is losing ground in building a critical minerals sector. CEO Brian Menell told Reuters that the company is evaluating several opportunities, including bidding for the Dobra lithium deposit in Ukraine.TechMet is a privately held company with stakes in ten businesses, including Brazilian Nickel and Rainbow Rare Earths in South Africa. Menell says the aim is to add more assets within a year despite the weaker market environment.
– This current short-term period of market weakness for lithium, nickel, cobalt and rare earth elements is a fabulously enhanced opportunity to deploy capital, he said.
However, the company’s valuation of around 1.3 billion dollars limits how large its investments can be. Raising too much new capital risks diluting existing shareholders, making TechMet highly selective in its approach.
Continued fundraising and focus on Ukraine
Earlier this year, TechMet raised 300 million dollars, including 180 million from the Qatar Investment Authority. The company has now reopened fundraising, which is expected to close within three to five weeks, according to Menell.
One of its most significant opportunities is the Dobra lithium deposit in Ukraine, expected to become the first project in a joint US–Ukraine investment fund established in April.
– We’re bidding for the rights, and I think we’re very credible in terms of operational, technical and financial capacity, Menell said.
– We’re also backed by the US government, which is certainly a plus given the Ukraine–US reconstruction fund.
TechMet’s largest investors include the US International Development Finance Corp, as well as Mercuria, S2G Investments and Lansdowne Partners.
The United States has accelerated its efforts to build a domestic critical minerals sector in recent years, including through a multibillion-dollar agreement in July with MP Materials to strengthen domestic production of rare earth elements.
Europe criticised for slow progress
The EU has also introduced its Critical Raw Materials Act and last week announced a new strategy for partnerships with resource-producing countries. But Menell believes Europe remains far behind the United States in reducing its dependence on China.
– I really fear for Europe, said Menell, whose company is registered in Ireland.
– They’re quite good at talking, but it’s really frustrating. There’s a lot of dysfunctional bureaucracy and a lack of political will and resolve.
EU officials say reducing dependence on China for critical minerals is a top priority. The bloc approved 47 strategic projects in March and is developing a joint purchasing platform for minerals and energy. The model mirrors the approach used after Russia’s invasion of Ukraine in 2022 to reduce reliance on Russian energy.
Despite these efforts, industry analysts warn that Europe risks falling further behind if permitting, financing, and political decision-making do not accelerate. For sectors such as battery production and high-tech manufacturing, slow progress could widen the gap with the US and Asia—and leave China maintaining strong control over global supply chains.
Source: Reuters
