A United States government-backed consortium is negotiating a landmark deal to invest upwards of $500 million in Tanzania’s vast Kabanga nickel project.
The ambitious transaction aims to secure vital supplies of battery metals while countering Asia’s dominant grip on the global critical minerals market.
Orion CMC, a specialized investment group backed by the U.S. International Development Finance Corporation, emerged as the primary equity partner for the venture.
The group is finalizing negotiations to purchase a substantial minority stake in Kabanga Nickel Limited, a subsidiary controlled by New York-listed Lifezone Metals.
While terms remain confidential, sources familiar with the matter indicate the total strategic investment will likely hover between $500 million and $600 million.
Lifezone Metals plans to retain operational control of the subsidiary while utilizing the fresh capital to advance construction on the rich East African deposit.
The project carries an estimated construction price tag of $942 million, with a final investment decision expected from corporate leadership early next year.
Washington has aggressively ramped up public financing across Africa to weaken China’s strategic chokehold on global refined nickel and processing supply chains.
Indonesia currently controls nearly 60 percent of global nickel production, largely driven by massive investments from Chinese smelting firms over recent years.
Securing the Kabanga deposit ensures Western supply chains retain access to essential raw materials for electric vehicle battery manufacturing and industrial steel production.