(Bloomberg) -- JPMorgan Chase & Co. is backing a startup that aims to close the looming global supply gap for copper, the metal that’s critical for the clean-energy economy.
MineSense Technologies Ltd raised $42 million in an investment round led by JP Morgan Asset Management’s sustainable growth equity team, according to a statement Wednesday. The privately-held company uses a combination of software and hardware to help mining firms more precisely and quickly measure ore, which increases production and reduces waste. The funds will be used to increase the commercial deployment of MineSense’s product.
The Vancouver-based company’s technology has boosted output at existing mines by 5% to 25%, according to the statement. The company has bigger ambitions, aiming to fill up to 10% of the global copper supply gap, according to MineSense Chief Executive Officer Jeff More.
A historic deficit is looming for copper, the metal that’s used in electric vehicles and power grids, amid an increase in government and corporate climate pledges and a lack of existing supply. The world is set for a shortage of as much as 10 million metric tons of copper in 2035, according to an industry-funded study from S&P Global.
Read More: Copper’s massive supply shortfall
The Vancouver-based startup has already deployed its technology in major copper mines, including Chile’s Collahuasi, one of the world’s largest copper mines that’s jointly owned by Anglo American Plc, Glencore Plc and Mitsui & Co. They also operate in the Antamina mine in Peru, which is jointly owned by Teck Resources Ltd., BHP Group Ltd., Glencore and Mitsubishi Corp.
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