Investments
As a strategic, hands-on investor, Pallinghurst’s investment strategy is on investing in the vital materials and projects required for the global transition to sustainable energy sources.
Pallinghurst has responsibly developed, built and operated major resource projects in North America, Europe and Africa, cementing its position as a conscientious leader within the battery materials space, and as the collaborator and invest manager of choice for our partners and investors alike.
For almost 20 years, Pallinghurst has worked on the simple premise that as the world’s population expands, there will be an increased need for sustainably sourced raw materials. To this end, in 2018 it established a core team of industry experts, accountants, financiers, geologists, engineers, all with the collective vision of developing the energy sources required to power our planet and daily lives for decades to come, and preserve our planet for future generations.
We carefully curate our investment portfolio, spending time with the management teams of each company before, during and after investment. Our stewardship of these projects is paramount to their continued successes, and we form strong bonds with their team members. We see ourselves as an extension of their teams, supporting in everything from strategy, construction and fundraising to legal and marketing guidance.
Pallinghurst has a formidable track record, with some notable, selected investments as follows:
The Pallinghurst Group first invested in Nouveau Monde Graphite in 2019 – one of the western world’s most advanced graphite projects, strategically positioned in Quebec, Canada. NMG is building the largest and lowest-cost producer of zero-carbon battery-grade anode material outside of China. The project has gone from strength to strength and has received recognition from local government for its forward-thinking, environmental consciousness. This modern example of a responsible, future-centric mine-development company, is a leader in the emerging Quebec battery-materials hub, in which Pallinghurst has played a critical role.
NMG was listed on the NYSE in 2022 and Arne and Andrew were present, together with their fellow Board Members, to ring in this astounding accomplishment.
Graphite is an essential element in lithium-ion batteries, making it one of the critical minerals in the battery materials revolution. It is predominantly processed in China, but global battery and EV manufacturers are seeking alternative, sustainable sources of graphite to meet the ever-increasing demand levels.
The Pallinghurst Group invested in Talon Metals in 2021, in partnership with Rio Tinto. Talon is developing Tamarack, a very attractive Nickel, Copper and Cobalt asset. It is expected to become a key supplier to support the energy storage and EV revolution, with a supply agreement signed with Tesla and a USD114 million grant from the US Department of Energy as part of its X.
Battery grade Nickel is essential in the lithium-ion batteries that power electric vehicles as well as for energy storage used to make renewable energy more commercially attractive and sustainable.
Previous Investments
Pallinghurst made its first investment into Nemaska Lithium, based in Quebec, Canada, in 2019, restructuring the company out of financial hardship and into construction. Together with the Quebec government, Pallinghurst ran a cohesive turnaround process to optimise and reinvigorate the project. In 2022, Pallinghurst and Livent merged its interest in the company, resulting in significant returns for Pallinghurst investors and spelling a new era for Nemaska as it continues to go from strength to strength under Livent’s direction, firmly establishing it as one of the lithium projects of the future – ideally located for the North American market.
Lithium is critical to the clean energy transition due to its use in energy storage, batteries, and thus in almost every piece of technology we use today. The need to supply lithium has never been more critical, as renewable energy combined with energy storage is now cost competitive, if not cheaper, than conventional alternatives in many countries around the world.
To meet the projected global demand for lithium, an additional 176 new projects the size of Nemaska will be needed by 2040. A lithium supply gap already exists, which will be exacerbated by the fact that development timelines for new resource projects are often not met.
The Pallinghurst Group invested in Sedibelo over several years, diligently overseeing its growth and development.
Sedibelo Resources Limited is a mid-tier platinum group metals (PGMs) producer in South Africa, exploring and developing mining operations in a sustainable and responsible manner, to create long term value for all stakeholders and leave a lasting legacy beyond its mining activities. It has a formidable safety record and works closely with local communities.
The Pallinghurst Group identified platinum group metals (PGMs) as an attractive commodity with many ‘green’ applications, and a key component for fuel cells, thus assist in reducing harmful vehicle emissions. Particularly, for fuel cell electric vehicles as they use more than twice the amount of platinum than internal combustion engine vehicles.
