Urgent interventions needed for an innovation-led energy transition in mining
SAN FRANCISCO, CA – June 26, 2025 — Venture capital investment in mining and critical metals has surged more than tenfold since 2020, highlighting a growing recognition of the sector’s role in the clean energy transition.
Yet a new report from Cleantech Group warns that this influx of capital is not reaching the areas of greatest need—namely early-stage hardtech solutions, mineral processing and remediation technologies, and innovation in the Global South.
The report, “Innovating Mining for the Energy Transition: Interventions to Accelerate Global Ecosystems,” was developed in partnership with Quadrature Climate Foundation (QCF). It outlines targeted interventions across Chile, South Africa, Zambia, and Indonesia to ensure that mineral-rich countries are able to derive greater local value from their resources through stronger innovation ecosystems.
This interventions include improving linkages between local start-ups, universities, investors, and corporates to catalyze economic opportunity, technology development, and sustainability gains across the mining value chain.
“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, Senior Consultant at Cleantech Group and one of the report’s authors.
“Philanthropy can play a key role not only through catalytic capital, but also by bridging gaps that markets alone won’t address—such as enabling shared demonstration infrastructure or connecting Global South innovators to state-of-the-art facilities and networks in the Global North.”
Key Findings From the Research
Uneven Investment Across the Value Chain: Despite rising venture interest, most capital continues to concentrate in lower-risk areas like exploration and software-based tools. Technologies requiring more hardware—such as processing, refining, and remediation solutions, which are critical for decarbonization and improved environmental performance—remain underfunded due to their capital intensity and longer development timelines.
Global Innovation Disparities: Over 80% of VC funding between 2020 and 2024 went to companies based in the U.S., Australia, and Canada. This has left major resource-holding countries in the Global South significantly underrepresented in mining innovation, despite their mineral wealth and strategic importance to global supply chains.
Early-Stage Support Falling Short: While average deal sizes have increased, early-stage investment (particularly Series A and B rounds) has declined. Innovators in emerging markets face additional hurdles: weak local investment networks, limited testing infrastructure, and fragmented support ecosystems.
The Role of Philanthropy: Philanthropic capital has a critical role to play in addressing these gaps. From supporting shared test infrastructure and artisanal mining initiatives, to backing collaborative R&D and unlocking early-stage innovation, the report outlines where philanthropy can act as a bridge and catalyst for change.
For a deeper dive into these high-impact interventions—and how they vary by country—read the full report and download a complimentary webinar.
About Cleantech Group
Cleantech® Group is a market intelligence company that helps corporates, public sector, investors and others, identify, assess, and engage with the innovative solutions and opportunities that are related to the world’s massive, and growing, environmental and climate challenges. Our insights and expertise are delivered to clients all over the world through our Research, Consulting, and Events. We have been the leading authority on global cleantech innovation since 2002.