Gates And Bezos-Backed Startup Makes Move For DR Congo's Lithium

KoBold Metals, a startup backed by billionaires Bill Gates and Jeff Bezos, has approached the Democratic Republic of Congo's (DRC) government with an offer to develop one of the world's largest hard rock lithium mines.

The mining startup looks to take over the disputed mining license for the Roche Dure deposit, taking advantage of the two governments' discussions about a potential minerals-for-security partnership.

KoBold's bid could resolve an ongoing dispute between Australia's AVZ Minerals and China's Zijin Mining Group. AVZ, which previously controlled the lithium project, lost its rights in 2023 when the government split the permit, handing part of it to Zijin. Per Bloomberg's report, KoBold's proposal involves compensating AVZ and acquiring the remaining stake while allowing Zijin to maintain control over the northern section of the deposit.

Despite an 80% decline in lithium prices since a peak in 2022, Zijin has actively expanded its operations, acting greedy when others are fearful in anticipation of a future demand and price rebound.

Meanwhile, KoBold staked its claim as a unique company in this industry, using a proprietary AI-powered technology that analyzes geological data more accurately than traditional exploration methods.

This tech-driven approach has attracted over $400 million in funding from high-profile investors, including Breakthrough Energy Ventures (founded by Gates) and Bezos' Bezos Expeditions.

Arguably, the company's best success has been in neighboring Zambia, where it found the Mingomba asset – possibly the best copper asset in the country. Experts believe that once operational in the early 2030s, it could rival Zijin's Kamoa-Kakula mine in DRC, which produced almost 400,000 tons of copper in 2023.

While DRC is the world's largest producer of cobalt, lithium extraction in the country has lagged behind other regions, such as Australia and South America.

Roche Dure could change the balance, placing the country on the map of major battery-grade lithium producers, as KoBold's interest aligns with the effort to bring this region closer under U.S. influence and pacify the unrest that threatens mineral production.

Still, extraction of hard rock lithium requires extensive open-pit excavation. This traditional method generates significantly more waste rock, consumes vast amounts of water, and uses toxic chemicals in processing, posing greater risks to local ecosystems and communities. Yet, in anticipation of lithium demand, companies are increasingly looking for large-scale projects.

KoBold Metals remains a private company, but CEO Josh Goldman told CNBC a year ago that it plans to go public within three to four years.

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