ACG Acquisition Co Ltd on Monday said it will be renamed to ACG Electric Metals Ltd as it invests in two Brazilian mines to supply metals to electric vehicle makers.

ACG Acquisition is a special purpose acquisition company looking to benefit from favourable price conditions for new economy metals and other mining materials.

ACG Acquisition said it purchased the Atlantic nickel sulphide mine and the Mineracao Vale Verde copper mine in Brazil for $1.0 billion from funds advised by Appian Capital Advisory LLP, as it looks to become a ‘new leader in green critical metals’.

The transaction is backed by $100 million equity commitments from miner Glencore PLC, carmaker Stellantis NV and investment company La Mancha, and an additional $100 million prepayment from Volkswagen AG’s battery subsidiary PowerCo.

Under its new name, the company will supply electric vehicle manufacturers, such as Stellantis and PowerCo, to provide ‘security of supply, full supply-chain accountability and low carbon emissions products.’

ACG Chief Executive Officer said: ‘ACG Electric Metals will be a company designed to take advantage of the opportunities presented by key global trends: the massive increase in demand for battery metals, the polarisation of supply chains, and the need to reduce carbon emissions - from the mine to the end-customer.

‘These high-quality mines will enable ACG’s mission to be the green metals supplier of choice to western EV automakers.’

Shares in ACG Acquisition were untraded at $10.20 in London on Monday afternoon.

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