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AI-Powered Mineral Exploration: Billionaires-Backed Kobold Metals Raised $491 Million

Kobold Metals, a Berkeley, California-based startup, has raised $491 million out of its targeted $527 million funding round, as revealed in a recent regulatory filing. The company specializes in using artificial intelligence (AI) to discover new deposits of critical minerals like lithium and copper, which are essential for the global energy transition. 

Kobold Metals is supported by a roster of high-profile backers, including billionaire investors Bill Gates, Jack Ma, and Jeff Bezos. In addition, prominent venture capital firms Andreessen Horowitz and T. Rowe Price co-led its previous funding round.

How Kobold Metals is Revolutionizing Mineral Exploration

Founded in 2018, Kobold Metals reached a valuation of $1 billion last year. According to The Wall Street Journal, the company aims to increase its valuation to $2 billion with the completion of the current funding round. 

Once finalized, this will be one of the largest climate-tech capital raises of 2024, trailing only the $621 million Series E round by Ascend Elements, a company focused on renewable battery production, based on data from PitchBook.

The company has gained attention for its innovative use of machine learning and computer vision technologies to locate rare earth minerals. These minerals, particularly copper and lithium, are crucial for developing electric vehicles (EVs), renewable energy storage, and other technologies that are key to the global shift toward greener energy systems. 

  • By deploying AI, Kobold Metals aims to expedite the discovery of these resources, reducing the time and financial costs traditionally associated with mineral exploration.

Kobold Metals’ pursuit of battery metals started 3 years ago in northern Quebec, Canada, where the company detected lithium near Glencore’s Raglan nickel mine. Since then, Kobold has expanded its exploration to about a dozen properties across Zambia, Quebec, Saskatchewan, Ontario, and Western Australia. 

These ventures are often formed through joint partnerships, including collaborations with BHP and BlueJay Mining to explore critical minerals in Greenland. 

Kobold’s AI Maps the Future of Critical Minerals

The mining startup aims to build what it describes as a “Google Maps” of the planet’s underground mineral deposits. By leveraging AI, Kobold can collect and analyze various data streams — including historical drilling data, satellite images, and geological surveys — to identify areas with a high potential for new mineral discoveries. The AI applies algorithms to this data, identifying geological patterns that suggest the presence of minerals.

Kobold Metals AI-powered mineral exploration technology
Visual from the company website. Machine Prospector – a continually evolving system nade up of a growing repository of proprietary machine learning, data processing, and artificial intelligence modules, used to assess prospects and guide decisions at a global scale.

Kobold’s technology gives it a distinct edge, enabling it to locate resources that traditional geological methods might miss. This AI-driven approach helps the company pinpoint where mineral deposits are most likely to be found. It also aids miners in deciding which land to acquire and where to drill. 

Despite the technological advances and strategic partnerships, the broader battery metals market has seen some turbulence. Lithium, a key component in electric vehicle batteries, experienced a two-year rally that peaked in 2022. 

However, the market has since collapsed due to an oversupply and slower-than-anticipated growth in battery demand. Rising interest rates have further dampened global EV sales, leading some automakers to scale back their production targets. According to Benchmark Mineral Intelligence, a consultancy firm, the lithium market is expected to remain in surplus until 2028.

One of the Silicon Valley firm’s primary goals is addressing this supply gap necessary to electrify transportation. The company projects that this gap, particularly for lithium, will reach a staggering $5 trillion. 

Lithium supply gap by Kobold Metals
Chart from Kobold Metals

Meeting this demand is critical to supporting the global shift toward electric vehicles and sustainable energy, as lithium is a key component in battery production. This underscores the urgent need for scaling up lithium mining and refining capabilities to accelerate the transition to a greener future.

In December last year, Kobold revealed intent to discover lithium in the U.S., Canada, Australia, Canada, and Africa. 

From Lithium to Copper: The Race to Power the Global Energy Transition

Apart from lithium, a significant driver of Kobold’s growth has been its July 2024 announcement that its AI technology had successfully discovered a massive copper deposit in Zambia. This finding marks the largest copper discovery in over a decade. It then positioned the company as a pioneering force in modern mineral exploration. 

Copper, in particular, is in high demand due to its critical role in electrical wiring and renewable energy infrastructure, such as wind turbines and solar panels.

With an estimated global demand for copper projected to reach 30 million metric tons by 2030, Kobold aims to efficiently locate high-potential copper deposits through advanced machine-learning techniques. As the EV market grows, the demand for copper is expected to increase significantly. Each electric vehicle requires about 80 kg of copper for wiring and components. 

The timing of Kobold’s funding round comes amid increasing demand for raw materials essential for the energy transition. As governments and corporations worldwide push for decarbonization and renewable energy adoption, the need for materials like lithium and copper has soared. 

According to industry experts, securing access to these resources is paramount to achieving climate goals, and companies like Kobold Metals are uniquely positioned to meet that demand.

The post AI-Powered Mineral Exploration: Billionaires-Backed Kobold Metals Raised $491 Million appeared first on Carbon Credits.

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The Strategic Case for Nature-Based Carbon Investments

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Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.

1. Define the sourcing problem before choosing a project

Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.

This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.

CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.

2. Develop nature-based carbon investments around the actual supply chain

The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?

Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.

Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.

The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.

3. Compare the proposal with other ways to protect supply

WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.

The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.

The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.

The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.

4. Establish what the carbon outcome could count toward

Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?

Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.

SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.

For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.

Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.

5. Build a financial case that survives weaker assumptions

Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.

Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.

Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.

A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.

6. Fund a pilot with a clear expansion decision

Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.

Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.

Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.

This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.

Discuss a sourcing opportunity with CCC

Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.

Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.

Sources

  1. Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
  2. World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
  3. Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
  4. United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
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How to buy plastic credits, and what to check before you do

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A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.

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Carbon Footprint

EU carbon credit claims after 27 September 2026

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EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.

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