Venture Capital Investment in Mining Innovation Increased Over 10-Fold Since 2020
A new report, "Innovating Mining for the Energy Transition: Interventions to Accelerate Global Ecosystems," has been released, outlining targeted interventions in Chile, South Africa, Zambia, and Indonesia. The report aims to ensure these mineral-rich countries derive greater local value from their resources and become drivers of the clean energy transition, rather than mere suppliers of raw materials.
The key interventions proposed include strengthening linkages among local startups, universities, investors, and corporates to catalyse economic opportunities, technology development, and sustainability improvements across the mining value chain. Providing catalytic capital focused on early-stage hard-tech solutions, mineral processing, remediation technologies, and fostering innovation specifically in the Global South is another crucial intervention.
Building demonstration infrastructure and connecting Global South innovators with state-of-the-art facilities and networks in the Global North is also highlighted. Philanthropy plays a critical role in bridging market gaps, enabling shared demonstration infrastructure, and connecting Global South innovators to advanced facilities and networks in developed economies.
In Africa, initiatives such as business accelerators, testing facilities, corporate matchmaking, and programs focused on artisans are being implemented to help transition these countries from resource suppliers to technology producers. National strategies like Zambia's 2024 National Critical Minerals Strategy focus on local value addition, downstream processing, and expanded research and development to foster homegrown mining innovation.
Noah Ross, senior consultant at Cleantech Group, emphasises the need for a new wave of catalytic capital to support early-stage hardware solutions. He also suggests that philanthropy can play a key role in providing this capital and bridging gaps that markets alone won't address.
The report highlights that the surge in venture capital investment in mining and critical metals has more than tenfolded since 2020. However, it warns that this influx of capital is not reaching areas of greatest need, such as early-stage hard-tech solutions, mineral processing, and remediation technologies.
The report was developed in partnership with Quadrature Climate Foundation (QCF), underscoring the importance of collaboration in supporting the clean energy transition in the Global South. The areas of greatest need, as identified in the report, include early-stage hard-tech solutions, mineral processing, and remediation technologies.
This approach aims to tackle the current imbalance where most mining tech innovation originates in developed economies, while mineral extraction happens largely in the Global South, hindering equitable economic benefits and supply chain sovereignty. The report emphasises the need for new catalytic capital and coordinated ecosystem-building efforts to unlock sustainable, inclusive mining innovation in these regions.
[1] Innovating Mining for the Energy Transition: Interventions to Accelerate Global Ecosystems. (2022). Retrieved from https://www.cleantech.com/research/innovating-mining-for-the-energy-transition-interventions-to-accelerate-global-ecosystems/ [2] Ross, N. (2022, July 12). A New Wave of Catalytic Capital is Needed to Support Early-Stage Hardware Solutions. Retrieved from https://www.cleantech.com/news/a-new-wave-of-catalytic-capital-is-needed-to-support-early-stage-hardware-solutions/
Venture capital could be strategically allocated towards early-stage hard-tech solutions in the technology sector, focusing on areas like mineral processing and remediation technologies. To foster innovation in the Global South, partnerships between local startups, universities, investors, and corporates might be bolstered, providing catalytic capital for such initiatives.
