(Ecofin Agency) - Nickel, essential for electric vehicle batteries, is a key metal for the energy transition. With the Kabanga project, Tanzania will soon be able to supply the world market with battery-grade nickel. The U.S. recently expressed interest in the project.

Lifezone Metals announced on Aug. 27 that it has signed a letter of commitment with the U.S. Development Bank (DFC). The American firm is thus on the path to securing political risk insurance from the DFC for its Kabanga nickel project in Tanzania. 

"Our partnership with the U.S. and Tanzania continues to deepen as we pursue our shared goals of building resilient supply chains for critical minerals while driving sustainable economic development," said Chris Showalter, CEO of Lifezone.

The Kabanga project is a key part of the U.S. strategy for sourcing critical metals. Helaina Matza, Acting Special Coordinator for the Partnership for Global Infrastructure and Investment (PGII), visited Tanzania this week to discuss the project's development with local authorities.

Kicked off by the U.S., the IIMP is a G7 program aiming to mobilize $600 billion over the next five years for investments that diversify global supply chains. Kabanga should contribute to this goal. The project includes a mining operation and a refinery capable of producing battery-grade nickel, copper, and cobalt, and is expected to supply the U.S. market by 2026.

The Tanzanian government owns 16% of Kabanga. Lifezone Metals and its partners own the other 84%. On this project, the American firm was backed by mining group BHP. The latter pumped $100 million into the project. 

Kabanga, according to a feasibility study, should be completed by the end of September 2024.