UK Pallinghurst, Luxembourg's Traxys set up battery materials JV

British metals and mining investment firm The Pallinghurst Group and Luxembourg-based commodities trader Traxys SA on Tuesday launched a joint venture, through which they will seek to acquire controlling stakes in mining projects for the supply of materials used in rechargeable batteries and energy storage.

The two parties did not disclose financial terms of the transaction.

The Pallinghurst-Traxys Battery Materials joint venture plans to invest in large, low-cost projects mainly across North America, Europe and the Asia Pacific, which can supply critical materials such as graphite, lithium and cobalt.

The total sum that the joint venture is ready to invest will amount to USD 2 billion (EUR 1.82bn), according to media reports.

The focus will be on responsibly and ethically-sourced materials, with a view to cashing in on the rising demand for electric vehicles and rechargeable batteries.

An already an established supplier of cobalt, copper and nickel, Traxys will take charge of sourcing and supply services in the joint venture. The company is looking to broaden its offering of critical materials.

Pallinghurst, for its part, will identify and manage the investment projects. The London-based firm has already acquired a 20% stake in Canadian graphite producer Nouveau Monde Graphite. Pallinghurst is also conducting a due diligence process with a view to investing CAD 600 million (USD 453m/EUR 411.4m) in Nemaska Lithium, which is developing a lithium mine in Quebec, Canada.

(USD 1.0 = EUR 0.908)

(CAD 1.0 = USD 0.754/EUR 0.685)

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