US takes stake in battery-metal firm to wean itself off China amid EV revolution

  • Cobalt is an important ingredient in cathodes of most electric-vehicle batteries and its refining capacity is largely under China’s control.
General Motors CEO Mary Barra does not think that electric vehicles will become obvious choice for all customers any time before 2040.
General Motors CEO Mary Barra does not think that electric vehicles will become obvious choice for all customers any time before 2040.

The US government has taken an equity stake in a battery-metals company in a move that undercuts dependence on China for a key material used in electric vehicles.

TechMet Ltd. received a $25 million investment from the US International Development Finance Corporation to help develop a Brazilian nickel and cobalt mine, the Dublin-based company said Monday in a statement. Cobalt is an important ingredient in cathodes of most electric-vehicle batteries and its refining capacity is largely under China’s control.

Also check these Vehicles

Find more Cars
Mg 4 Ev (HT Auto photo)
UPCOMING
BatteryCapacity Icon64kWh Range Icon350 km
₹ 30 - 32 Lakhs
Alert Me When Launched
Tata Sierra Ev (HT Auto photo)
UPCOMING
BatteryCapacity Icon69 kWh Range Icon420 Km
₹ 25 - 30 Lakhs
Alert Me When Launched
Tata Harrier Ev (HT Auto photo)
UPCOMING
BatteryCapacity Icon50 kWh Range Icon400 Km
₹ 22 - 25 Lakhs
Alert Me When Launched
Honda Elevate Ev (HT Auto photo)
UPCOMING
₹ 18 Lakhs
Alert Me When Launched
Tata Punch Ev (HT Auto photo)
BatteryCapacity Icon35 Kwh Range Icon421 km
₹ 10.99 - 15.49 Lakhs
Compare
View Offers
Tata Tiago Ev (HT Auto photo)
BatteryCapacity Icon19.2 to 24 kWh Range Icon 315 km
₹ 8.49 - 11.79 Lakh
Compare
View Offers

“Investments in critical materials for advanced technology support development and advance US foreign policy," Adam Boehler, chief executive officer of the government agency, said in TechMet’s statement.

Also Read : Tesla to acquire German battery assembly maker ATW Automation

The move is another example of US efforts to reduce reliance on its greatest geopolitical rival for key materials and comes days after President Donald Trump signed an executive order to expand domestic production of rare-earth minerals -- another sector China dominates. Such minerals are needed for magnets in a broad range of products including electric vehicles.

TechMet’s main investments include lithium-ion battery recycling plants in Canada and the US, a Rwandan tin and tungsten mine and a US vanadium facility. Most metals targeted by the company fall under China’s influence at some stage of the global supply chain -- a fact TechMet CEO Brian Menell is keen to highlight.

Also Read : Shares of LG Chem rise after report of Tesla's interest in battery unit

“TechMet represents a real opportunity for its investors not only to profit from the impending supply-demand dislocation for critical metals, but also to invest into ethical sources of supply that are aligned with US interests, thereby playing a part in redressing the supply-chain imbalance," he said in the statement.

Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.

First Published Date: 05 Oct 2020, 09:44 AM IST
NEXT ARTICLE BEGINS

Check Latest Offers

Please provide your details to get Personalized Offers

Choose city
+91 | Choose city
Choose city
Select a dealer

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.