Rare earth elements, essential for electric vehicles, wind turbines, smartphones, and defense, have their refining capacity predominantly concentrated in China, accounting for nearly 90%. Alkemio, a startup based in Buenos Aires, has secured $2 million in pre-seed funding to localize the refining process closer to the mining sites. By employing a modular, organic system, Alkemio aims to reduce the need to transport raw materials overseas, enabling Latin America to leverage its mineral resources more effectively.
Alkemio is part of an emerging group of startups innovating in the sourcing and refining of rare earth minerals. The company’s unique approach replaces traditional chemical-intensive methods with an organic system that separates minerals on-site, starting with dysprosium, a crucial element in electric vehicle motors and wind turbines. This modular design not only allows for smaller facilities but also claims an 80% reduction in capital expenditure. The company also boasts over a 70% reduction in emissions and the complete elimination of toxic solvents.
The recent funding round saw participation from investors like Dalus Capital, VU Venture Partners, Amplifica Capital, VX Ventures, and Epic Angels. The funds will be used to scale Alkemio’s lab prototype into a 100-kilogram commercial pilot in the United States.
Alkemio is among several companies reimagining rare earth sourcing and processing. With traditional refining requiring over 500 chemical steps and large centralized facilities, most deposits remain unprocessed. Rising trade tensions have led Latin American mining companies to stockpile materials previously shipped to China.
Alkemio’s founders, Ailín Svagzdys, Federico Bonnet, and Lorena Molina Calderon, bring diverse expertise to the venture. They have secured pilot agreements with mining companies in Latin America, the US, and Canada, aiming to establish a sustainable and reliable refining capability globally.
