By Eric Onstad
LONDON (Reuters) -U.S. government-backed investment vehicle TechMet is launching a trading arm for critical minerals to specialise in the burgeoning market for Western supplies of materials in which China is dominant, its CEO said on Thursday.
The United States, Europe and many Asian nations are scrambling to boost domestic output of critical materials such as rare earths and cut dependence on China.
A new trading unit, TechMet SCM, will focus on speciality metals, from both its portfolio companies and third parties.
“We’re aligned with the re-shoring of the supply chains towards the West and I think you can’t have a better differentiator than having this U.S. DFC anchorage,” said Quentin Lamarche, CEO of the new trading unit.
The U.S. government’s International Development Finance Corp is one of TechMet’s biggest investors.
Asked if the new trading arm would do deals with U.S. agencies, Lamarche said the names of customers would be confidential, adding: “It’s not a hidden secret that we want to play a role, right? And an active role.”
A new employee is due to join TechMet SCM in the next few weeks in Washington D.C., one of three locations for the trading arm, he said.
Lamarche is based in Brussels and the other office is in South Korea, which is important due to the battery sector there.
TechMet SCM is focusing on battery metals lithium, cobalt and nickel, but wants to expand to other critical minerals, possibly rare earths, Lamarche said.
Privately-held TechMet has stakes in 10 companies, including Brazilian Nickel, Cornish Lithium, Rainbow Rare Earths and Momentum Technologies, which developed a process to recycle EV batteries and rare earth permanent magnets.
Previously, TechMet had a trading joint venture with one of its biggest shareholders, commodity trading house Mercuria, but the new structure where the trading arm is wholly owned by TechMet will be more flexible, Lamarche said.
“Mercuria remains a shareholder in TechMet and we will still do operations with them, but we’ll be more agile going forward.”
Lamarche previously worked for Specialty Metals Resources in Hong Kong and for Umicore in Belgium.
Other major TechMet shareholders are the Qatar Investment Authority, S2G Investments and Lansdowne Partners.
(Reporting by Eric OnstadEditing by Mark Potter)
