It was announced earlier today that Pallinghurst Group will be forming a joint venture with that of Traxys to invest up to two billion in mining projects for battery materials. The venture brings together Pallinghurst’s experience in developing major mining projects, with that of Traxys knowledge of supplying cobalt, nickel and other battery grade materials.
The key to the joint venture between the two players, is that Pallinghurst-Traxys will focus on large scale, low cost operations in investment grade jurisdictions. In simpler terms, the venture will be focused on investing within mining operations across North Amerca, Europe and Australia, while ignoring Latin America, and Africa. The intent is for the firm to only support ethical and responsibly sourced materials.
The focus on battery materials is a result of the strong emphasis on environmental awareness and decarbonisation being exhibited globally as of late. The movement towards the use of renewables rather than fossil fuels presents an opportunity from a mining standpoint that will allow the joint venture to capitalize on the current trend. The increased adoption of electric vehicles and rechargeable batteries is one such example.
Pallinghurst-Traxys is set to focus on the entire aspect of the supply chain, from sourcing and mining the raw materials to delivering the refined product to battery manufacturers. Under the joint venture, Pallinghurst will be responsible for identifying and managing projects, while Traxys will focus on its strength of marketing the final product and providing it to end users within its own current supply chain. The joint venture will allow Traxys to offer a more comprehensive solution to current suppliers through offering additional raw materials such as lithium which are not currently within its wheelhouse.
Over the past years, we have seen a rapid increase in demand for battery materials. Whilst Traxys already is a leading supplier of cobalt, copper and nickel, our partnership with Pallinghurst will provide access to a broader offering of critical materials, covering in essence the full bill of materials of this value chain. In addition, Pallinghurst-Traxys will have a unique position where it can benefit from every link of the battery materials value chain.
Mark Kristoff, CEO of Traxys
The announcement of Pallinghurst’s involvement in ethically sourced battery materials comes as the firm continues discussions with that of Nemaska Lithium (TSX: NMX). Nemaska is currently aiming to lock down approximately $600 million in funding for its Quebec-based lithium hydroxide project, which requires funding from Pallinghurst Group to enable it to complete construction and commence operations.
Information for this briefing was found via Nemaska Lithium, Pallinghurst Group, and Traxys. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
