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- Investment poised to develop first refineries of its kind in Africa
- Novare, ReElement collaboration to boost local employment
- Novare to raise capital and provide operational support for the project
Novare Holdings, a financial services firm operating across Africa, has partnered with ReElement Technologies to develop fully integrated refining facilities for critical minerals and rare earths through a $100 million investment.
The collaboration marks a significant step toward establishing Africa’s first refinery dedicated to high-purity elements essential for producing batteries and other advanced technologies in both the commercial and defence sectors using the latest technology developed by Purdue University.
The refining platform will also create local jobs, South Africa-based Novare and US-based ReElement said in a statement.
With this venture, Novare is strengthening its impact investment strategy by driving industrial development in Africa’s mining sector and ensuring local beneficiation by leveraging ReElement’s expertise and technology.
“Novare is excited about this collaboration’s potential for securing reliable and quality critical mineral supplies,” said Derrick Roper, Managing Director of Novare Equity Partners. “It aligns seamlessly with our vision of being an impactful investor by establishing leading environmentally friendly refining facilities in sub-Saharan Africa.”
The refining facility, developed with ReElement’s advanced chromatographic separation and purification technology, will produce high-purity lithium carbonate, rare earth oxides, and other critical minerals.
Africa is rich in natural resources, yet historically, it has exported raw materials, adding little value and deriving few benefits. By investing in local processing, Novare and ReElement are addressing this challenge and contributing to positioning Africa as a key player in the global supply chain.
The initiative aligns with broader efforts such as the African Continental Free Trade Area (AfCFTA), which seeks to boost intra-African trade and industrial development.
The refining facilities will be developed with a focus on minimising its carbon footprint. Plans to explore green energy sources for operations further align with Novare’s sustainability goals.
The financial services firm has a track record of including sustainability in its investments, from green properties to pension fund advisory services, balancing environmental and social governance (ESG) principles with strong financial returns. Through some of its African retail properties, Novare has actively addressed the fight against climate change by emphasising energy efficiency and reduced emissions in line with principles adopted by the World Bank’s International Finance Corp. (IFC).
ReElement has developed a versatile, cost-effective technology for processing several rare earths and critical minerals. Easily scalable, it efficiently separates, purifies, and refines these elements using an environmentally sustainable process that uses minimal hazardous chemicals and zero toxic discharge.
The facilities will source raw materials locally and regionally to meet growing demand in Africa and Globally. ReElement Technologies plans to begin development in the second half of 2025. Novare will provide the necessary capital investment along with operational management.
The $100 million investment will be raised from institutional investors through a mix of equity and debt. With its extensive experience in African investments, Novare is well-positioned to secure the necessary capital while ensuring long-term profitability and impact.
“Novare will lead the way forward, modelling how African nations can and must serve as primary stakeholders in the global supply chain for critical minerals,” said Ben Kincaid, CEO of ReElement Technologies Africa.
Site selection for the facilities is underway. To maximise efficiency and reduce logistical costs, the preference is for locations near mining operations. Regulatory approvals will be sought to ensure compliance with local policies and environmental standards.
The development comes as demand for critical minerals is expected to continue surging.
According to the International Energy Agency (IEA), lithium demand surged by 30% in 2023. Demand for nickel, cobalt, graphite, and rare earth elements grew by 8% to 15%. If countries follow through on their energy and climate commitments, the demand for these minerals will double by 2030 and triple by 2040.
It also comes at an opportune time for Africa to benefit, as geopolitical tensions and supply chain vulnerabilities have highlighted the need for diversified sources. China dominates the global rare earth and critical minerals supply chain, but Africa holds vast untapped reserves.
The Democratic Republic of Congo (DRC) is the world’s largest cobalt producer, supplying 70% of global demand and a major copper producer.
Meanwhile, South Africa, Namibia, Zimbabwe, Madagascar, Mozambique, Tanzania, Angola, Gabon, and Guinea are rich in platinum group metals (PGMs), manganese, rare earth elements, nickel, graphite, bauxite, lithium, and uranium, making them key players in the global supply of critical minerals.
“This partnership reflects our commitment to innovation in the critical minerals sector,” said ReElement Technologies Africa’s Kincaid. “We are bringing innovative refining technology to the region, enabling nations to enhance and capture the value of their natural resources and catalyse industrial economic development on the continent.”
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