California-based metals exploration company KoBold Metals said on Wednesday that it had agreed on a framework to buy AVZ Minerals’ interests in the Manono lithium deposit in the Democratic Republic of Congo (DRC).

The agreement will enable KoBold, which is backed by billionaires Bill Gates and Jeff Bezos, to invest more than $1bn (R18.27bn) to bring lithium from Manono to Western markets.

Lithium, a key metal used extensively to make batteries for electric vehicles and various consumer electronics, is produced in limited quantities in the US, leading to a heavy reliance on China.

The administrations of both President Donald Trump and his predecessor, Joe Biden, have made efforts to reduce this dependency.

Last month, Massad Boulos, President Trump’s senior adviser for Africa, said that the US is in talks to invest billions of dollars in the mineral-rich DRC.

The country boasts vast reserves of cobalt, lithium, uranium and other minerals essential for the energy transition.

Both the Silicon Valley start-up and AVZ Minerals said that they were collaborating with all stakeholders involved in the deal, including the governments of the United States and the DRC.

Reuters