Kinterra Capital Secures $565M Fund for Battery Metal Mining
Kinterra Capital, a Canadian private equity firm, has closed its inaugural fund, totaling $565 million. The fund is dedicated to supporting the mining of battery metals. The move follows a surge in private capital influx driven by growing government incentives for sourcing and producing battery materials in North America.
The fund will focus on asset-level investments over the next eight to 10 years, targeting regions including North America, Western Europe, and Australia. These investments will span a spectrum of operations, ranging from lithium mines to battery manufacturing plants, reflecting Kinterra’s commitment to the entire value chain of battery mineral production.
Key Investments
Kinterra has already deployed a significant portion of its fund into promising ventures, including investments in Canon Resources, a nickel processing plant in Quebec, and White Pine North. These investments underscore Kinterra’s dedication to fostering a robust and diverse portfolio in the battery materials sector. Cheryl Brandon, co-founder and co-managing partner at Kinterra emphasized the urgency of addressing the structural underinvestment in critical minerals over the past decade. She stated,
“Kinterra addresses that need by bringing the right combination of active management, financial resources, deep sector knowledge, and cross-functional technical expertise required to identify and develop assets across the value chain.”
Kinterra’s Road Ahead
Kinterra intends to collaborate with leading automotive OEMs, battery manufacturers, and other partners through highly structured transactions. Kamal Toor, co-founder and co-managing partner at Kinterra, outlined the strategic goals, stating,
“Our investments will enable the complete ‘mine to battery’ solutions that OEMs require to meet their electrification objectives.”
As governments worldwide set ambitious targets for mining critical raw materials and increasing processing capabilities, Kinterra’s substantial fund signifies a step toward meeting these goals. McKinsey estimates a need for a $3 trillion to $4 trillion increase in investments by 2030 to bridge the growing gap in mining, refining, and smelting activities.
Kinterra Capital’s debut fund marks a significant stride in supporting the essential mining of battery metals, aligning with global efforts towards sustainable energy and reduced reliance on foreign sources.
