Investors see gold in energy transition metals

Investors are building war chests to fund new sources of critical metals that will go into electric vehicle batteries and clean energy infrastructure.

Why it matters: Demand is expected to soar for critical minerals for the energy transition.

Yes, but: Much of the supply chain weaves through China.

Driving the news: S2G Ventures has backed mining company TechMet's $300 million equity financing it's raising.

• S2G Ventures is the direct investment team of Builders Vision, an impact platform founded by Lukas Walton, the grandson of Sam Walton.

State of play: TechMet isn't the only metal and mining investor ramping up.

• Last month, Canadian private equity firm Kinterra Capital closed $565 million for a first fund focused on investing in infrastructure for mining and processing minerals for batteries and clean energy technologies.
• Kinterra investments include a copper project in Michigan, a nickel project in Quebec, and buying Australian nickel miner Cannon Resources.
• Automakers like GM and Ford are investing deeper in the battery supply chain, too, and backing mines that they hope will produce lithium and other minerals.

Big picture: The U.S. has been investing heavily to try to boost its position and compete with China in the mineral supply chain for electric vehicles.

• The Inflation Reduction Act has steered billions of dollars toward new domestic critical mineral projects, EV battery manufacturing and clean energy deployment.
• At the same time, China has spent many years investing in its battery supply chain dominance. It processes over half of global lithium, two-thirds of cobalt, more than 70% of graphite and one-third of nickel, according to the International Energy Agency.