Comprehensive M&A data with integrated detailed company information
‘Anglo American to spin off internal venture capital arm’
Posted on Wednesday, 16 May 2018 13:48
Anglo American is said to be looking to the future with the use of platinum as a catalyst in hydrogen fuel cells by spinning off its internal venture capital arm at a time when an oversupply of the metal has pushed down prices.
Demand for the platinum group of metals (PGMs) is currently balanced across the autocatalyst, jewellery and industrial sectors.
However, growing concerns regarding air pollution, and calls for cleaner-emission transportation, are pushing miners into considering applications other than for internal combustion engines, for example.
A change in automotive industry demand from diesel or traditional cars to emerging new technology, including hydrogen fuel cell electric vehicles, should provide growth opportunities.
This kind of electricity source combines hydrogen and oxygen, with platinum used as a catalyst and to lower temperature, to create a current with very little pollution.
Chris Griffith, chief executive of Anglo American’s platinum division, told the Financial Times (FT) that by spinning off the internal venture capital arm there will be more investment opportunities.
He believes that by having access to investors outside of the group, the unit will have more chances to pick up equity stakes in emerging hydrogen startups.
By supporting this category, the venture capital business will aid the widespread commercial adoption of fuel cells and hydrogen, which could then overtake the use of lithium-ion batteries in electric vehicles.
Griffith added: “It’s about growing demand. We believe we can do so much more with it with partners alongside us.”
When contacted by Reuters regarding the article by the FT, Anglo American confirmed the report in an emailed comment.
The company indicated more details would be provided on the spin-off of the venture capital arm, and said this business is looking into new applications for PGMs, including hydrogen fuel cells.
© Zephus Ltd