According to people familiar with the matter, Lifezone has identified Orion CMC as its preferred investment partner following a competitive selection process. The consortium, established in October with sovereign backing from the US International Development Finance Corporation (DFC) and Abu Dhabi’s L’imad Holding, was created to support strategic critical minerals investments worldwide.

Preferred Investor Selected to Advance Project

The US Backed Nickel Investment represents a significant milestone for the Kabanga project, which Lifezone aims to develop into a large underground mining operation. The company has been seeking an equity partner to help finance construction of the mine as it progresses towards a final investment decision.

Lifezone Chief Executive Officer Chris Showalter said on 29 July that the company had selected a preferred partner from several offers to make a strategic equity investment in the project. He added that negotiations had entered the final phase following a competitive process managed by Standard Chartered.

While the company did not identify the preferred investor publicly, people familiar with the discussions said Orion CMC had been selected. The size of the proposed investment has not been disclosed, and Lifezone declined to comment on market speculation.

Lifezone estimates the Kabanga project will require approximately US$940 million in development capital. Once operational, the mine is expected to produce around 350,000 tonnes of nickel concentrate annually, alongside copper and cobalt concentrates. A planned second-phase refinery would produce higher-value nickel sulphate for export.

Critical Minerals Strategy Drives Investment

The US Backed Nickel Investment reflects broader efforts by the United States to strengthen access to critical minerals required for manufacturing, clean energy technologies and electric vehicle supply chains while reducing reliance on concentrated sources of supply.

Indonesia currently accounts for around 60 per cent of global nickel production following significant investment in processing capacity after the country’s ban on raw nickel ore exports. Against this backdrop, projects such as Kabanga have become increasingly important as governments seek to diversify global supply.

The DFC has played an active role in supporting the project since 2024, when it began due diligence on political risk insurance and explored potential financing options. In June, the agency announced it would expand its investment in Orion CMC to improve access to critical minerals and reduce dependence on concentrated supply sources, although it did not disclose additional funding amounts.

Orion CMC’s portfolio also includes a preliminary agreement announced earlier this year to acquire a 40 per cent interest in two copper-cobalt mining operations in the Democratic Republic of Congo. That transaction has yet to be completed.

Project Moves Towards Final Investment Decision

The US Backed Nickel Investment comes as Lifezone continues preparations for a final investment decision, which the company expects to reach early next year. Alongside securing an equity partner, the company has appointed Société Générale to arrange debt financing for the project.

Negotiations with the Tanzanian government have taken longer than initially anticipated. The government holds a 16 per cent interest in the Kabanga project and has identified critical minerals as an important area for future mining sector growth.

Lifezone began searching for a strategic investor after BHP ended its option to acquire control of the project and sold its minority interest in Kabanga about a year ago.

If completed, the US Backed Nickel Investment would represent one of Orion CMC’s first major mining investments and provide additional momentum for development of one of Africa’s most significant undeveloped nickel projects, bringing the Kabanga mine closer to construction and future production.

The company maintains a positive outlook for platinum group metals (PGMs). These metals are primarily utilized in autocatalysts designed to reduce vehicle emissions. The positive forecast for PGMs persists despite the anticipated market influence of battery electric vehicles, which operate without emission control systems.

Expansion of Bokoni Platinum Facilities

The planned expansion for the Bokoni platinum project involves the construction of a new 120,000 metric ton per month PGM concentrator. This new PGM concentrator will operate alongside the existing 60,000 ton per month plant, which is scheduled to undergo a complete refurbishment. The newly constructed facility is projected to be commissioned in 2030.

According to the company, the Bokoni platinum project is expected to achieve steady-state production in 2032. From that year onward, the facility will yield an annual output ranging between 350,000 and 400,000 ounces of PGMs. For context on current production levels, the company reported producing 615,719 ounces of PGMs during its financial year ending in June 2025.

Previously, the company suspended activities at the Bokoni site in June 2025. At that time, management stated that the smaller 60,000 ton per month mining and milling capacity was inadequate to offset fixed costs and maintain profitability. The newly approved ARM mining operations will address these capacity constraints.

Off-Take Agreement and Financial Investment

The mining company, which also manages coal, manganese, and iron ore assets, confirmed it is restarting open-pit mining and nickel concentrate production at the Nkomati site. This restart follows a conditional off-take agreement secured with Sweden’s Boliden.

The Nkomati nickel mine was originally placed on care and maintenance in 2021. This closure was the result of persistent financial losses caused by escalating operational expenses and depressed nickel prices. African Rainbow Minerals assumed full control of the Nkomati nickel asset in July 2025 following the departure of its former joint venture partner, Nornickel.

To facilitate the restart, the company plans to invest $46 million into the project. Once operational, the facility will produce 56,065 tons of nickel concentrate on an annual basis, ensuring a steady supply of nickel concentrate for its off-take partner.

The Shift in Capital Allocation Toward Green Minerals

The surge in investment is being driven by a rare alignment of government policy, consumer demand, and corporate strategy. Governments around the world are providing billions in subsidies and low-interest loans to secure their domestic supply chains for lithium, nickel, cobalt, and graphite. At the same time, institutional investors are increasingly applying ESG (Environmental, Social, and Governance) filters to their portfolios, leading them away from fossil fuels and toward the “solutions-oriented” mining of battery metals. This has created a massive pool of capital that is specifically earmarked for green mineral projects.

This shift is particularly evident in the junior mining sector. Historically, small exploration companies struggled to find the funding needed to transition from discovery to feasibility. Now, high-quality lithium and nickel projects are attracting attention from venture capital and specialized private equity firms early in their lifecycle. This early-stage funding is crucial for accelerating the development timeline, allowing projects to move through the permitting and engineering phases much faster than they would have in a traditional market cycle.

Automotive OEMs as Direct Investors

One of the most significant developments in the current cycle is the emergence of automotive original equipment manufacturers (OEMs) as direct investors in mining companies. In a bid to secure their future production lines, giants like Tesla, General Motors, and Volkswagen are no longer content to wait at the end of the supply chain. They are moving “upstream,” signing multi-year off-take agreements and taking direct equity stakes in mining projects. This provides the miners with the “bankability” they need to secure traditional debt financing for construction.

For the automotive companies, these investments are a form of insurance against price volatility and supply shortages. By locking in their material costs and ensuring a guaranteed supply of battery-grade minerals, they can better plan their long-term EV rollout strategies. This trend toward vertical integration is blurring the lines between the automotive and mining industries, creating a more interconnected and resilient supply chain that is fundamentally different from the one that powered the internal combustion era.

The Global Expansion of Nickel and Cobalt Production

While lithium often gets the most attention, the investment landscape for nickel and cobalt is equally dynamic. High-nickel chemistries are essential for long-range EVs, leading to a scramble for high-purity, Class 1 nickel. This has spurred massive investments in regions like Indonesia, which has become the global hub for nickel production. However, because most Indonesian nickel is found in laterite ores, bringing it to battery-grade quality requires complex and capital-intensive high-pressure acid leaching (HPAL) technology.

Cobalt, despite efforts to reduce its usage in batteries, remains a critical component for safety and energy density in many chemistries. The investment here is focused on ensuring ethical and transparent supply chains. Companies are investing in large-scale, mechanized cobalt mines in the Democratic Republic of Congo (DRC) to move away from the risks associated with artisanal mining. At the same time, there is a push to develop “cobalt-free” alternatives and to expand production in more stable jurisdictions like Australia and Canada. These geographical and technological shifts are all being funded by the current wave of battery metals investments.

De-Risking the Mining Lifecycle Through Technology

Investment is also flowing into the technologies that make mining more efficient and less risky. Exploration technology, powered by AI and satellite data, is being used to identify new deposits with greater precision, reducing the cost of “blind” drilling. On the operational side, investment in automation and digital twins is allowing mining companies to optimize their throughput and reduce waste. These efficiency gains are essential for keeping production costs down in an environment where inflation and labor shortages are constant threats.

Furthermore, capital is being used to de-risk the environmental impact of new projects. Investors are increasingly demanding that mines have a clear plan for carbon neutrality, water management, and social impact. Funding is being directed toward onsite renewable energy plants, water recycling systems, and community development projects. By addressing these ESG concerns early, mining companies can reduce the risk of regulatory delays and social opposition, making their projects more attractive to the broader financial market.

The Strategic Importance of Domestic Supply Chains

In the wake of recent global supply chain disruptions, “strategic autonomy” has become a buzzword in many capitals. Governments in the U.S., EU, and Australia are using tax credits and direct grants to incentivize the development of domestic battery metal projects. The U.S. Inflation Reduction Act, for example, provides significant incentives for minerals that are extracted or processed in countries with which the U.S. has a free trade agreement. This has triggered a wave of investment in Canadian and Australian mining projects that are seen as “secure” alternatives.

This government-led investment is creating a “two-tier” market, where minerals from ESG-compliant and geopolitically friendly regions command a premium. For mining companies, this provides a powerful incentive to maintain high standards and to build processing facilities closer to the end-user. This regionalization of the supply chain is a direct result of the current investment climate, which prioritizes security and sustainability over just-in-time, lowest-cost procurement.

The Role of Recycling in the Investment Thesis

No discussion of battery metals investments is complete without mentioning the circular economy. The investment community is increasingly viewing battery recycling as a “mining” activity. Huge amounts of capital are being poured into specialized recycling facilities that can recover lithium, cobalt, and nickel from end-of-life batteries and manufacturing scrap. This sector is seen as a high-growth opportunity that complements primary mining.

From an investment perspective, recycling has a lower risk profile than new mining projects it is located in stable jurisdictions, has a lower environmental footprint, and utilizes more predictable “ore” sources. Many of the same automotive OEMs that are investing in mines are also partnering with recyclers to create a closed-loop system. As the volume of EV batteries reaching the end of their life increases in the late 2020s, the recycling sector will become a major player in the global mineral supply, further diversifying the investment landscape.

Conclusion

The massive wave of battery metals investments currently sweeping the globe is the primary engine of the energy transition. By providing the capital needed for exploration, production, and refining, these investments are ensuring that the physical materials required for a clean energy future are available when needed. The transformation of the mining sector from a traditional extractive industry to a technology-driven, ESG-focused partner in the green economy is a direct result of this financial pressure. As we continue to scale up our climate ambitions, the synergy between finance and geology will only grow stronger, solidifying the role of battery metals as the most important commodity class of the modern era.

Cutting Overburden at the Source through Precision Technology

The largest component of the physical footprint in mining is overburden, the rock that must be removed to access an orebody. Conventional open-pit mining often operates with high strip ratios, frequently exceeding 4–6 tonnes of waste for every single tonne of ore. This inefficiency is driven by a reliance on coarse geological models, excessively wide safety buffers, and indiscriminate bulk blasting. To modernize this process, the industry must transition toward high-precision systems that minimise the initial environmental impact.

• High-Resolution Modelling: The adoption of advanced orebody modelling allows for a more granular understanding of mineral deposits, enabling companies to tighten pit boundaries.
• Selective Extraction and Pre-Concentration: By focusing on specific mineral zones and processing material closer to the source, operators have demonstrated the ability to reduce overburden movement by 30–60 percent in hard-rock operations.
• Sensor-Based Characterisation: Utilising real-time sensors to identify ore quality helps in reducing dilution and excluding marginal zones that would otherwise contribute to waste.
• Denser Drilling Grids: Implementing more frequent and precise drilling ensures that only the most viable material is excavated, adhering to the principle that the most effective waste reduction is not excavating waste in the first place.

Furthermore, establishing strict mine-closure discipline is a non-negotiable aspect of Solving Mining’s Trillion-Tonne Environmental Reckoning. Generated overburden should be progressively backfilled, followed by comprehensive rehabilitation involving topsoil restoration and reforestation. While these obligations often exist within legal frameworks, rigorous enforcement is necessary to eliminate abandoned mining scars within a single generation.

Transforming Tailings into Strategic Construction Resources

Tailings, the residual materials left after ore processing, are frequently misclassified as inert waste. In reality, these streams often contain high-purity silica, aluminosilicates, and residual unrecovered metals. At the same time, the construction industry faces sustainability challenges, such as the destructive mining of river sand, which damages riverbeds and groundwater systems. This contradiction presents an opportunity for industrial synergy.

• Manufactured Sand (M-Sand): When tailings meet specific standards for particle size, chemistry, and leachability, they can be processed into manufactured sand and aggregates, providing a direct substitute for river-mined sand.
• Low-Carbon Building Materials: Tailings can be blended with industrial by-products like fly ash or slag to create geopolymer bricks and other sustainable construction materials.
• Regulatory Integration: While technologies for crushing, grading, and stabilisation are proven, a formal regulatory linkage between mining waste and construction demand is required. Extending manufactured-sand frameworks to certified tailings-derived materials would simultaneously reduce river-sand extraction and legacy tailings liabilities.

Unlocking Secondary Value from Industrial Slag

Downstream mineral processing generates slags that remain remarkably rich in secondary metals. Copper smelting slag, for example, typically contains 30–45 percent iron trapped in complex mineral phases, alongside residual copper and other trace elements. Despite this richness, recovery efforts remain limited because prevailing economics often discourage investment in energy-intensive reprocessing while fresh iron ore remains available. This represents a market failure where environmental externalities are not appropriately priced.

To address this, policy tools modelled after existing Refuse-Derived Fuel mandates could be implemented. These might include:

• Financial Incentives: Providing price premiums for steel produced using iron recovered from slag.
• Recycled Content Mandates: Establishing phased requirements for minimum shares of slag-derived or recycled inputs in primary steelmaking.
• Partial Substitution Strategy: Even the partial replacement of primary ore with slag-derived materials creates viable demand for waste while reducing the pressure on primary extraction sites.

The Convergence of Urban Mining and Primary Extraction

A significant opportunity for Solving Mining’s Trillion-Tonne Environmental Reckoning lies at the intersection of “urban mining” and conventional extraction. India’s battery-recycling and critical-minerals-processing sectors have already developed advanced hydrometallurgical systems capable of recovering over 95 percent of lithium, cobalt, and nickel from end-of-life batteries and electronics.

Although mining tailings differ in scale and grade from electronic waste, the core processing principles, selective leaching, impurity control, and solvent extraction, are entirely transferable. Industrial symbiosis offers a mutual benefit: recycling operators gain access to large, long-duration feedstock streams, while mining companies can recover hidden value, stabilise tailings dams, and reduce long-term environmental liabilities. The existing Rs 1,500-crore incentive scheme under the Battery Waste Management Rules provides a strategic window to pilot these large-scale collaborations.

A Phased Roadmap for a Sustainable Mineral Future

The challenge of Solving Mining’s Trillion-Tonne Environmental Reckoning will not be resolved through a single intervention but requires mining, processing, and recycling to evolve in parallel over a realistic timeline.

1. Immediate Horizon (0–3 Years): The focus must be on deploying precision-mining tools to cut overburden movement by 30–60 percent in new operations. Rigorous enforcement of mine-closure obligations and the introduction of targeted incentives for slag recovery are priority actions.
2. Medium-Term Horizon (3–7 Years): The industry should scale the valorisation of certified tailings for construction materials to replace river-sand extraction. Simultaneously, recycling capacity must expand to include the pilot reprocessing of legacy tailings.
3. Long-Term Horizon (7–15 Years): For highly recyclable minerals like lithium, cobalt, and nickel, circular systems should meet a major share of incremental demand. Bulk materials like copper and iron will see slag recovery and recycling structurally embedded into the economy, allowing primary extraction to concentrate solely on high-grade strategic deposits.

Conclusion

The pragmatic middle is neither an idealistic rejection of mining nor an acceptance of unchecked environmental damage. It is a pragmatic recognition that developmental imperatives and environmental responsibilities are equally binding. By systematically shrinking the environmental footprint through every battery recycled, every tonne of tailings valorised, and every unit of steel derived from slag, the industry can navigate toward a sustainable future. The tools to reconcile these forces exist; the requirement now is the collective will to deploy them at scale.

The shares were priced at A$0.45 each, marking a 73% premium over the company’s 15-day VWAP of A$0.26. LLI noted that the placement was conducted under the “flow-through shares” scheme, a provision of Canadian tax law, with Canaccord Genuity acting as the sole lead manager.

The company has acknowledged strong market support for the placement, with a preference given to major existing shareholders in Australia and Canada.

Funds from this placement are earmarked for the Trieste Lithium Project, located along the resource-rich Trieste Greenstone Belt in James Bay, Quebec.

The project is in proximity to several spodumene-bearing lithium ventures, and the capital will facilitate an innovative geophysical survey, an extensive summer field programme and a targeted drilling campaign, all aimed at advancing the project’s development. LLI managing director Adam Ritchie said: “The demand for the placement and ongoing support from our shareholders has been overwhelming.

“The vast majority of our major shareholders participated in this placement, including Jody Dahrouge, principle of our in-country geological partner, Dahrouge Geological Consulting. Their support is a reflection of the potential of the project and the solid foundation that our team has built in Canada.

“The “flow-through shares” provisions under Canadian tax law reduces shareholder dilution but more importantly ensures valuable exploration and development work can be accelerated.”

The FIRB’s no objection notification was issued without conditions under the Foreign Acquisitions and Takeovers Act 1975 (Cth).

The permit paves the way for KOMIR to acquire a 30% stake in the Lefroy Lithium Project in the Eastern Goldfields in WA.

KOMIR is a South Korean Government-owned entity and is set to invest A$4.5m ($3m) in lithium exploration to earn its 30% interest in the JV.

The Lefroy Lithium Project, located near other significant lithium operations, is part of Maximus’ diversified portfolio in the Kambalda region, which includes more than 335,000oz of gold resources.

Additionally, Maximus signed a non-binding memorandum of understanding with LG Energy Solution, which could potentially lead to the acquisition of KOMIR’s stake and negotiations over a significant portion of the project’s future lithium output.

The upcoming drill programme will aim to expand the spodumene-bearing pegmatite intersections at Kandui Prospect and explore new targets at Yilma and Landor.

The company is also awaiting assay results from its recent soil sampling programmes, which are expected to identify further drilling targets within the Lefroy tenement.

Maximus managing director Tim Wither said: “Receiving FIRB approval is an important milestone for the strategic lithium partnership, allowing the company to progress the Lefroy Lithium Project, fully supported with KOMIR’s $3m investment.

“We have made some significant progress during the FIRB review process, utilising a $200,000 non-refundable deposit to build our geological understanding and identifying some very promising prospective targets at Kandui, Yilmia and Landor through the first-phase soil geochemistry mapping and a successful initial 3,000m RC [reverse circulation] drill programme.

“In November 2023, we successfully intersected several shallow high-grade spodumene-bearing pegmatites at our Kandui prospect, which will be the focus for the upcoming drill programme, whilst drill testing the Yilmia and Landor Prospects.”

Metso’s scope of delivery consists of the VSF® X solvent extraction process for the production of a battery-grade nickel sulphate solution. In addition, Metso will deliver multiple polishing filters, a Courier® 6X HX analyser, as well as spare parts and advisory services. Prior to this order, Metso conducted the concept study and process test for the project. Basic engineering for the project is ongoing.

The modular Metso VSF (Vertical Smooth Flow) X plants offer lower lifetime costs, significantly shorter lead times, and sustainable Planet Positive life-cycle technology built on decades of experience in solvent extraction. Metso’s offering includes optimised solutions, complete plants and services through leaching, solvent extraction, and electrowinning technologies.

The programme will focus on determining the boundaries and extent of mineralisation north of the known Mineral Resource Estimate (MRE) area.

The 70+ hole hand-auger drill programme has been designed to target areas where mineralisation was identified in earlier wide-spaced regional hand-auger drilling. The target area is up to 20 km north of the current MRE boundary. Drilling is currently underway and will be completed in the coming weeks. Four hand-auger teams have been deployed under the supervision of Sovereign’s in-country technical team.

Samples will be initially processed in the company’s Lilongwe own lab facility and then shipped for final analysis at certified international laboratories. Results from the drill programme are expected in the coming weeks.

Highlights:

• Wide-spaced regional follow-up drilling for the Kasiya Project underway focusing on the region to the north of the current resource footprint, with results from the drill programme expected in the coming weeks.
• Recently reported reconnaissance drilling to the south identified an 8 km extension of mineralisation which remains open along strike and at depth.
• Kasiya is already the largest natural rutile deposit and second-largest flake graphite deposit in the world.
• Kasiya’s current MRE of 1.8 billion t at 1.0% rutile and 1.4% graphite comprises broad and contiguous zones of high-grade rutile and graphite that occur across an area of over 201km2.
• Optimisation programme for the Kasiya Project continues in conjunction with Sovereign’s strategic investor, Rio Tinto.

As part of this comprehensive review, Metso’s proprietary, sulphate-free alkaline pressure leach process has been validated as a Planet Positive technology for the production of battery-grade lithium.

Metso’s hydrometallurgical alkaline leach process is a simple and safe way to refine spodumene concentrate to battery-grade end products like lithium hydroxide monohydrate and lithium carbonate. The innovative refining process produces high-purity lithium salts and hydrates, which are needed for the cathodes of lithium-ion batteries used in electric vehicles.

In the process, lithium is extracted with high yield. Inert and neutral mineral residue is minimised and ready to be reused or disposed of, thus minimising pollution to air, water, and soil. No additional impurity removal or precipitation stages are needed. In recent studies, the alkaline leach process has also shown reduced environmental impact compared to other technologies. Based on the Life Cycle Impact Assessment (LCIA), the process can provide up to 40 – 60% reduction in water consumption, as well as reduction in the acidification and eutrophication impact. The compact process also minimises plant footprint and embedded carbon.

Metso has been developing sustainable alkaline leaching technologies for hard rock lithium sources for 20 years already. Today, the offering includes comprehensive proprietary technologies for refining lithium from spodumene mineral concentrates. Intensive R&D and piloting is also ongoing in the processing of other lithium-bearing pegmatite hard rocks such as petalite, zinnwaldite, and lepidolite. Metso has proven processes also for the extraction of lithium from brines.

“The urgent need to implement solutions and technologies limiting global warming is driving the development of lithium-ion batteries that are used, for example, in electric vehicles (EVs) and renewable energy storage ecosystems. This, and the regionalisation of critical minerals sourcing has resulted in a surge in lithium projects. Currently, Metso is supporting several battery minerals projects that are in study, piloting, engineering, or delivery phases,” explained Marika Tiihonen, Technology Manager for Lithium at Metso.

“As a strong and reliable partner for the development of lithium hydroxide and other battery minerals projects, Metso can deliver the whole production process – from mine to battery materials, and recycling of black mass – complemented with world-class service support,” said Tiihonen.