Chances are, you’re reading or watching this blog from the comfort of your smartphone or laptop—devices powered by rechargeable batteries, connected through a vast and evolving network of grid infrastructure. What do all these technologies have in common? They depend on critical minerals and metals—essential materials at the heart of every link in the energy and power value chain.
In this short video blog, I chat with my colleague, Research Associate Buff Lopez, to discuss the latest insights from our ongoing work in the critical minerals space and why this sector is gearing up to be one of the most interesting problems and opportunities this year.
A few highlights we touch upon:
What does it mean to be critical?
Let’s take copper as an example, a metal known for its excellent electrical conductivity, corrosion resistance, and ability to facilitate rapid heat transfer. Both the clean energy transition and defense sector can agree on its importance. A standard 3MW wind turbine contains roughly 4.7 tons of the metal and it’s the second most used material by the U.S. DoD. But when it comes to things like graphite, silicon, or gallium, the answers vary.
To quote our own Anthony Vicari, “I think all of the above are, in some sense, undervalued.”
Is the critical minerals space VC backable?
Absolutely yes and it needs attention now, more than ever. However, it means addressing a lot of common expectations that are associated with venture capital and how they may or may not align with some areas of the critical minerals value chain. Regardless, some of the biggest moves we’ve seen in the news as of late in terms of investments are within the critical minerals space (from a $537M Series C to Kobold Metals back in January to a recent $500M deal between Apple and U.S.-based MP Materials).
Why does Oil & Gas care about lithium all of a sudden?
Chevron, ExxonMobil, and Equinor have now all put their flag in the brine at Arkansas’s Smackover formation for lithium. From our vlog, Buff notes, “This is actually a really natural extension of the oil & gas portfolio moving to diversify their energy portfolios.”
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