VC Investment in Mining Soars But Global South Still Left Behind

STARTUP VENTURE CAPITALJuly 2, 2025 at 12:53 PM UTC

TLDR

Venture capital investment in mining and critical metals has grown more than tenfold since 2020, driven by the rising demand for minerals used in clean energy technologies
However, a new report by Cleantech Group warns that this capital surge is missing early-stage innovation and the Global South
The report, developed in partnership with the Quadrature Climate Foundation, highlights gaps in funding for mineral processing, remediation technologies, and hard-tech startups

Venture capital investment in mining and critical metals has grown more than tenfold since 2020, driven by the rising demand for minerals used in clean energy technologies. However, a new report by Cleantech Group warns that this capital surge is missing early-stage innovation and the Global South, regions key to the energy transition.

The report, developed in partnership with the Quadrature Climate Foundation, highlights gaps in funding for mineral processing, remediation technologies, and hard-tech startups in countries like Chile, Zambia, South Africa, and Indonesia. It calls for targeted interventions to strengthen local ecosystems by improving linkages between startups, universities, corporates, and investors.

“To meet climate and industrial goals, we need a new wave of catalytic capital to support early-stage hardware solutions and ensure the Global South is empowered as a driver, not just a supplier, of the clean energy transition,” said Noah Ross, Cleantech Group senior consultant.

Cleantech urges philanthropic capital to bridge market failures by funding shared demonstration infrastructure and connecting Global South innovators to resources in the Global North. The report outlines policy and investment roadmaps to increase local value capture in mining-dependent economies.

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Key Takeaways

The energy transition is creating a new global race for critical minerals, but the innovation needed to extract and process these minerals sustainably is not being evenly funded. While VC money is flowing, it tends to favor late-stage ventures in developed markets. The Cleantech report shows that early-stage hard-tech startups—especially those working on mineral processing or environmental remediation—remain capital-starved. This is particularly true in the Global South, where countries rich in lithium, cobalt, and copper still operate mainly as raw material suppliers. To unlock more equitable and sustainable growth, philanthropic and catalytic capital must step in to build innovation ecosystems locally, supporting pilots, facilities, and partnerships. Without this, the Global South risks missing out on the economic upside of the transition while bearing the environmental costs. The report calls for reframing these countries not just as sources of minerals but as centers of technological development critical to the global climate agenda.

Venture Capital

Mining

Quadrature Climate Foundation

Critical Minerals