Mining investor TechMet closes second funding round at $120 million

(This April 15 story corrects fourth paragraph to show U.S. International Development Finance Corporation is independent of U.S. Agency for International Development)

(Reuters) - Mining investment firm TechMet, which counts the U.S. government as its largest investor, said on Thursday it had closed its second round of funding at $120 million, roughly 50% higher than initially expected.

The firm, which is an investor in battery recycler Li-Cycle Corp, has now raised nearly $133 million between its two rounds of funding. TechMet plans to use the funds to continue investments in mines and other projects that produce metals used to make electric vehicles.

“Our industry must completely transform itself in order to supply these strategic materials in the quantities necessary,” said Brian Menell, TechMet’s chief executive.

The U.S. International Development Finance Corporation, part of the U.S. government that invests in overseas development projects, is TechMet’s largest investor. Other large investors in the second funding round include hedge fund Lansdowne Partners and global energy trader Mercuria.

TechMet, which is an investor in Brazilian Nickel and U.S. Vanadium, said it plans a third round of funding for later this year with a goal of raising at least $250 million.

Reporting by Ernest Scheyder; Editing by David Holmes