Montreal-based startup Exterra Carbon Solutions announced that it has raised CAD $20 million (USD$14.5 million) to advance development of its technology to convert mining waste into low-carbon energy transition and sustainable building materials.

Founded in 2021, Exterra specializes in the conversion of asbestos mine tailings (AMT), the asbestos fibers in leftover rock and waste from mining, into minerals including nickel concentrate used for batteries in electric vehicles and amorphous silica used for low-carbon building materials. The company is building what it says will be the world’s largest asbestos mitigation facility, with an annual capacity to process over 300,000 tons of AMT annually.

According to the company. Quebec’s mineral waste contains critical and strategic elements, like nickel and magnesium which could be used to manufacture goods without the need for new mining, thus significantly reducing stress on the environment. In addition, the re-processing of mineral waste can reduce the footprint of historic mine infrastructure, like tailings facilities, Exterra said. With a regional supply capacity of up to 800 million tons of AMT, Quebec has the potential to become a leading producer of advanced battery materials for electric vehicles derived from mining waste, the company added.

Olivier Dufresne, CEO of Exterra, said:

“Exterra pioneers a revolutionary approach to transforming mining waste into valuable low-carbon products and solutions. With this funding, we’ll accelerate commercializing our dual-pronged platform that valorizes over 90% of minerals from asbestos residues while creating one of the shortest nickel supply chains for EV electrification in North America. This Series A marks a pivotal moment as we move toward commercial operations and demonstrates how mining can enable an equitable, sustainable net-zero future.”

The funding round was co-led by Clean Energy Ventures and BDC Capital, with the participation of the Government of Quebec, Investissement Quebec, MOL Switch, and Kinetics, a Karpowership initiative. Exterra is also collaborating with BASF, Énergir, WSP, and Winsome Resources. As part of this financing round, Clean Energy Venture and BDC Capital will gain seats on Exterra’s board of directors, the company said.

Daniel Goldman, Co-Founder and Managing Partner at Clean Energy Ventures, said:

“Exterra represents the future of responsible circular resource utilization. It’s rare to see a process like Exterra’s which can transform environmental liabilities into valuable assets through an innovative, scalable technology replicable globally. Along with our co-investors, we are excited to support the company’s growth as they scale this critical technology.”