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TechMet bidding for Ukraine lithium deposit

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Company raised $300 million, reopened fundraising

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Europe criticised for lagging in critical minerals sector

By Eric Onstad

LONDON, Nov 3 (Reuters) - The CEO of U.S.-backed

investment vehicle TechMet is evaluating portfolio additions,

including bidding for a Ukraine lithium deposit, but worries

that Europe is lagging behind the U.S. in building a critical

minerals sector to reduce Chinese dominance.

Privately-held TechMet, which has stakes in 10 companies,

ranging from Brazilian Nickel to South Africa's Rainbow Rare

Earths, aims to add more within 12 months, Chief

Executive Brian Menell told Reuters.

"This present short-term period of market weakness over

supply of lithium, nickel, cobalt and rare earth metals is a

fabulously enhanced opportunity to deploy capital," he said in

an interview.

The structure of TechMet limits the scope of investment due

to its relatively low valuation of about $1.3 billion based on

market prices of its portfolio.

Raising large sums would dilute current investors, so

TechMet is being very selective and strategic in its approach to

new companies, he added.

REOPENING FUNDRAISING AND UKRAINE LITHIUM OPPORTUNITIES

TechMet raised $300 million earlier this year, including

$180 million from the Qatar Investment Authority, but has

reopened fundraising, which is expected to close in 3 to 5 weeks

at a "significantly higher number", Menell said.

One of TechMet's opportunities is the Dobra lithium deposit

in Ukraine, expected to be the first project in a joint

investment fund with the United States created in April.

"We're bidding for the rights, and I think we're very

credible in terms of operational, technical, and financial

capacity," he said. "We're also backed by the U.S. government,

which is certainly a plus given the Ukraine-U.S. reconstruction

fund."

Ukraine is expected to select the winning bidder and

finalise agreements by the second quarter of 2026, he added.

The U.S. government's International Development Finance Corp

is one of TechMet's biggest investors, while others include

Mercuria, S2G Investments and Lansdowne Partners.

The United States has moved quickly to create a domestic

critical minerals sector, including through a

multibillion-dollar deal with rare earths group MP Materials ( MP )

in July.

'FEARS FOR EUROPE' AS IT WORKS TO END DEPENDENCE ON CHINA

The EU is also working to curb its reliance on Chinese

critical raw materials, having implemented its Critical Raw

Materials Act last year with a new plan to develop partnerships

with producer countries announced by the bloc last week.

But Menell said European efforts were still falling short.

"I really fear for Europe," said Menell, whose company is

registered in Ireland.

"They're quite good at talking, but it's really frustrating.

There's a lot of dysfunctional bureaucracy and lack of political

will and support and resolve," he said, referring to his

interactions with European officials.

Brussels says ending Europe's dependence on China for

critical minerals is a major priority, and its new partnership

push is expected to mirror some aspects of its move away from

Russian energy following Moscow's 2022 invasion of Ukraine.

EU officials approved 47 strategic projects for critical

minerals in March and are also working on a joint purchasing

platform for critical minerals and energy.