Kinterra Capital, a Canadian private equity firm, has successfully closed its debut fund with a whopping $565 million dedicated to securing critical mineral assets for battery development. This significant influx of private capital comes at a time when government incentives are increasing the sourcing and production of battery materials in North America.
A Market Amidst Growth
The market for critical minerals is growing rapidly, driven by the increasing demand for electric vehicles (EVs) and renewable energy solutions. Governments around the world are recognizing the importance of securing these critical resources and have implemented various incentives to support their development.
Government Incentives: A Catalyst for Growth
In the United States, President Joe Biden’s Inflation Reduction Act has set a target for battery components to be produced or assembled in North America by 2024 to qualify for half of the legislation’s EV tax credit. This stipulation is designed to reduce reliance on China and promote domestic industry.
Canada’s Role in Supporting Electric Vehicles
Canada has also been proactive in supporting the transition to electric vehicles, providing up to $15 billion CAD to automaker Stellantis and battery maker LGES to build an EV battery plant in Ontario. Additionally, the government is supplying billions of dollars to boost critical materials mining in the country.
The EU Green Deal Industrial Plan: A Global Approach
In the European Union, the Green Deal Industrial Plan sets targets for the region to mine 10% of its critical raw material needs, with recycling adding another 15%. The bloc also aims to increase processing to 40% of its needs by 2030.
Meeting Government Goals Will Require a Massive Investment
To meet these ambitious goals, investments in mining, refining, and smelting will need to increase significantly. According to McKinsey, the industry will require an additional $3 trillion to $4 trillion by 2030 to "bridge the great raw material disconnect."
Kinterra Capital: A Leader in Critical Mineral Investments
Kinterra Capital is well-positioned to capitalize on this growth, with a team of experts and a robust pipeline of investments. The firm’s debut fund will focus on securing critical mineral assets for battery development, supporting the transition to electric vehicles.
A Strong Team Behind Kinterra Capital
Kinterra Capital boasts an experienced team of professionals who bring extensive knowledge and expertise in the mining and energy sectors. This team is committed to identifying and investing in high-quality projects that will contribute to the growth of the critical mineral industry.
Conclusion
The closing of Kinterra Capital’s debut fund marks a significant milestone in the growth of the critical mineral market. With government incentives driving demand for these resources, companies like Kinterra are well-positioned to capitalize on this trend and support the transition to electric vehicles.
About the Author
Rebecca Bellan is a senior reporter at TechCrunch, covering transportation, including EVs, AVs, smart cities, AI, sustainability, and more. With a background in journalism and history from Boston University, she has also written for Forbes.com, Bloomberg CityLab, The Atlantic, The Daily Beast, Mother Jones, i-D (Vice), and more.
Related Topics
- Batteries
- Climate
- EV batteries
- Kinterra Capital
- Transportation
