Pala Investments (Pala), a multi-strategy investment company focused on the mining and metals value chain, has launched Pala New Energy Metals, an investment fund dedicated exclusively to investing in raw materials critical to the energy storage and clean energy value chains.
Pala New Energy Metals, which is launched with initial capital of USD150 million, has a mandate to invest in projects and businesses that provide leverage to the shift in the global energy mix, facilitated by advances in battery technologies and their industrial applications.
Pala New Energy Metals will have flexibility to invest across the capital structure, and will seek to invest in opportunities that include financing the development and production of battery metals as well as other minerals critical to renewable and energy-efficient technologies, as well as physical holdings of associated metals and intermediate products in the value chains for these industries.
The fund will also seek to invest in actively managed holdings in associated equities and credit; and non-extractive businesses supplying the battery and renewables industries, including processing and recycling.
Stephen Gill, Managing Partner of Pala, says: “We are excited to launch a platform dedicated to investing across the battery and new energy space. We see the potential for a shift in the industrial economy that is both pervasive and long-lived. We believe raw material supply is not sufficient to meet projected needs over the next decade as a result of strong demand for electric vehicles, grid storage, renewables, and energy-efficient manufacturing technologies.
“We believe these industrial shifts will result in changing supply and demand dynamics across a range of raw materials, which will provide for attractive investment opportunities going forward. Pala New Energy Metals’ flexible platform will enable us capture unique investment opportunities across asset classes and materials.”
