CEFC Invests US$75 Million in Resource Capital Funds to Boost Aussie Critical Minerals

Clean Energy Finance Corporation (CEFC) has invested US$75 million in global alternative investment manager Resource Capital Funds (RCF) to support Australia’s critical minerals supply chain.

In a Monday (December 9) press release, CEFC, a green bank owned by the Australian government, said the investment will also assist in further building momentum for the clean energy transition.

Jacqueline Lane, CEFC's director for Western Australia and resources, said RCF is a “highly experienced mining investment house." Its flagship private equity fund is aimed at delivering capital to Australian mining projects.

“The world urgently needs a strong supply of critical minerals to power the clean energy transition,” she noted, adding that CEFC's work with the RCF will reinforce the competitive advantage Australian minerals have in the global market.

Lane explained that there is a need to secure the critical minerals needed for the energy transition “quickly and sustainability,” highlighting lithium and nickel for batteries and copper for transmission.

“We believe the world is undergoing a paradigm shift in the demand for metals and minerals, and are pleased to be working with the CEFC to advance decarbonisation through investments in emerging critical minerals projects," said Jacqui Murray, partner and head of fund at RCF, in Monday's announcement.

The Australian critical minerals sector has seen a number of key developments in 2024, including the Albanese government committing AU$566.1 million for critical minerals exploration.

The money is geared at mapping resources, expanding exploration and supporting clean energy projects.

A separate injection amounting to AU$2.5 million was made to "supercharge" critical minerals technology; this was arranged through the Australian Critical Minerals Research and Development Hub.

The government also launched a digital prospectus highlighting the sector’s potential, while calls for the inclusion of aluminium and bauxite on the country’s critical minerals list have been made by concerned groups.

According to CEFC, Australian mining can benefit from the once-in-a-generation demand shift to the minerals required to accelerate world efforts to decarbonise by positioning itself as a low-emission and high-ESG industry.

“By meeting demand for these resources, the mining sector can help Australia and the world achieve net zero emissions by 2050, while continuing to create jobs and opportunities around the country," Lane said.

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.