Novare cements impact investor status with $100m ReElement mineral refinery deal
Novare Holdings, a South African-based financial services firm operating across Africa, has partnered with US-based 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.
With this venture, Novare is also strengthening its impact investment strategy by driving industrial development and creating jobs in Africa’s mining sector – 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.”
Growing Africa’s economy
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 such natural resources, yet historically, the continent has exported its raw materials rather than developing them.
This has added very little value and allowed the continent to derive few benefits from its most valuable resources.
By investing in local processing, Novare and ReElement are addressing this challenge and contributing toward 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.
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 currently 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 is also 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.
The demand for these 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 also grew, increasing by 8% to 15%.
If countries follow through on their energy and climate commitments, the demand for these minerals is expected to more than double by 2030 and triple by 2040.
Sustainability
The new refining facilities will be developed with a focus on minimising their carbon footprints, with plans to explore green energy sources for operations – further aligning 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 retail properties in Africa, 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, meanwhile, has developed a versatile, cost-effective technology for processing several rare earth and critical minerals.
Easily scalable, it efficiently separates, purifies, and refines these elements using an environmentally sustainable process using minimal hazardous chemicals with zero toxic discharge.
The facilities will also source raw materials locally and regionally to meet growing demand in Africa and globally.
An exciting future
ReElement Technologies plans to begin development in the second half of 2025, and Novare will provide the necessary capital investment and 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, with a preference for locations near mining operations to maximise efficiency and reduce logistical costs.
Regulatory approvals will be sought to ensure compliance with local policies and environmental standards.
“This partnership reflects our commitment to innovation in the critical minerals sector,” said 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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