Lithosquare Raises $25M to Revolutionize Mining Discovery

A Significant Fundraising for Lithosquare

Lithosquare, an innovative startup based in Paris, has recently succeeded in raising $25 million in funding. This round was co-led by World Fund, a German venture capital fund, and Kindred Capital, a British investor specializing in cutting-edge technologies. Other notable investors, such as French companies Daphni, Omnes Capital, and Ovni Capital, also participated in this funding.

Lithosquare's mission is to transform the discovery of critical metals using artificial intelligence. These metals, including copper, lithium, and nickel, are crucial for the manufacturing of electric vehicle batteries and energy storage systems, thus playing a central role in the global energy transition.

Global Dependence and European Challenges

Currently, the production of many critical metals is dominated by a limited number of countries, with China alone producing 95% of rare metals. This concentration raises growing concerns within the European Union, which seeks to reduce its dependence and secure its supply chains.

According to Aymeric Préveral-Etcheverry, founder and CEO of Lithosquare, the technology developed by the startup allows for the opening of new geographies for mining exploration, diversifying targets and enhancing the quality and resilience of supply chains.

Cutting-Edge Technology for Exploration

Lithosquare utilizes machine learning models to identify potential sites for critical metal deposits. These models, based on pattern recognition, analyze satellite images and geological data based on the characteristics of already discovered deposits. However, as Préveral-Etcheverry points out, this traditional method limits the search to already known sites.

To overcome this limitation, Lithosquare has developed a fundamental AI model that integrates multimodal data, including maps, textual reports, surveys, and geophysical data such as magnetism and radioactivity. This approach allows geologists to test new hypotheses and explore previously uncharted regions, reducing analysis times from several months to just a few days.

Expansion and Strategic Partnerships

The demand for Lithosquare's technology is rapidly growing, driven by increasing sovereignty imperatives. In 2023, the European Union adopted the Critical Raw Materials Act, setting ambitious targets for 2030, such as increasing domestic production to at least 10% of consumption and diversifying import sources.

Lithosquare has already established strategic partnerships, notably with the British mining company Aterian. This partnership aims to apply AI to eight exploration projects in Morocco and Botswana, with an initial investment of €500,000 for the identification of copper and critical metal deposits. Lithosquare receives initial payments for exploration, with future payments based on results, and plans to establish revenue-sharing agreements on future mines.

Growth Prospects and International Competition

Aymeric Préveral-Etcheverry announced that Lithosquare plans to double the size of its team to 40 employees and open a new office in North America to strengthen its commercialization efforts. The startup faces significant competition, particularly from Kobold Metals, an American company developing similar technology that raised $537 million in a Series C funding round, achieving a valuation of $3 billion.

Despite this competition, Préveral-Etcheverry remains confident in Lithosquare's ability to strengthen its leadership in Europe and expand globally. "The ambition is enormous," he states, highlighting the startup's ongoing efforts to become a major player in the mining exploration sector.