Amvest Capital Group Holdings LLC said it has partnered with Welsbach Holdings Pte Ltd to form a new energy material fund called Amvest-Welsbach New Energy Materials Fund I.
The company said that the fund is an investment vehicle on financing the upstream and midstream development of new energy materials to meet the looming supply shortages and capture value resulting from the new energy transition and the reorganization of global supply chains of new energy materials.
The fund expects to deploy at least US$100 million into the early-stage critical metals sector.
“The transition to low or zero carbon emission, sustainably produced renewable energy is probably the biggest challenge of our generation as everyone is affected by climate change,” said Daniel Mamadou, CEO of Welsbach Holdings. “Of the many obstacles to overcome, a major one faced by organizations and companies is access to adequate capital.”
He added: “At Welsbach Holdings, our purpose is to direct social and financial capital to support the energy transition. This means we actively invest funds and expertise in ventures that positively impact and contribute to the development of supply chains that bring critical materials to market.”
As the world transitions to new energy, there will be a greater dependency on a stable and reliable supply of new energy materials. Following COP26 in Glasgow last year, governments and institutions worldwide are accelerating action towards the goals of the Paris Agreement and the UN Framework Convention on Climate Change.
The global shift away from fossil fuels towards sustainable, zero carbon emission, renewable power generation, and adoption of electric vehicles is creating extraordinary demand for new energy materials (rare earth elements, lithium, nickel, vanadium, graphite, manganese, cobalt, and copper) previously used in much smaller quantities.
“The largest demand-pull of raw material supply the world has ever seen is upon us,” said Gabriel Alonso-Mendoza, managing partner of Amvest Capital. “The transition away from fossil fuels will create raw material production requirements that far exceed any previous commodity cycle, and we are excited to help facilitate the success of this global movements. ”
Managing partner of Amvest Capital Stuart Macliver said, “The capital markets have recognized the shortage of supply in New Energy Materials and the Fund is positioned to advance the development of materials required in the new energy transition. Together with our colleagues at Welsbach, we are in a unique position to leverage our combined 70 years of experience in the sector along with our global network in the New Energy Materials industry across six continents.”
Amvest Capital is a specialist investment management and corporate finance firm focused solely on the natural resources sector.
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