Gulf state seeks to grow in critical minerals market with $180 million investment.
Qatar’s investment in TechMet, a private firm that processes metals for clean energy technology, enhances their country’s effort to move into the critical minerals market while forwarding the U.S. goal of diluting China’s supply chain dominance.
The Qatar Investment Authority (QIA) made a $180 million investment in TechMet, a Western-backed company specializing in critical minerals production, according to an Aug. 7 announcement from the company.
Qatar, along with Saudi Arabia and the United Arab Emirates, is strategically positioning itself as a major actor in the global critical minerals market, F&E Trends notes. Leveraging their neutrality amid geopolitical tensions between the U.S. and China, the Gulf states aim to capitalize on the growing importance of these resources, particularly as the world transitions to renewable energy.
Meanwhile, the U.S. is seeking to encourage partners outside of China, to help diversify the critical minerals supply chain, and TechMet is part of that strategy.
China’s advantage
China controls approximately 90% of global rare earth refining and processes 68% of the world’s cobalt, 65% of nickel, and 60% of battery-grade lithium, giving it a significant advantage in the global market for manufacturing EV batteries and other advanced technologies, according to Goldman Sachs.
This concentration is worrying Western governments.
The Biden Administration has intensified efforts to reduce China’s control over the supply of critical minerals by signing supply deals with countries outside of China.
The EU has responded with a Critical Raw Materials Act, passed in April 2024 to focus on strengthening Europe’s supply of vital minerals, including those used in batteries and EVs.
TechMet’s expanding global footprint outside of China has helped it gain substantial backing from Western governments. “TechMet has invested more than $450 million into critical minerals projects in its existing portfolio of assets across North and South America, Europe and Africa,” the company says.
The US International Development Finance Corporation (DFC) has shown its interest in TechMet’s growth, contributing $50 million in 2023, following an initial investment of $25 million in 2020.
