Europe's €15M Critical Mineral Crisis: Is Hades Mining Your Next Big Investment Mistake?

In an era defined by the urgent need for sustainability and energy independence, a new player is entering the critical minerals market. The German mining startup Hades has successfully raised €15 million at a valuation of €67.5 million. This funding comes during a global surge for sovereign control over essential minerals, a trend fueled by escalating geopolitical tensions.

Leading the funding round are HV Capital and Headline, joined by existing investors such as Project A and Visionaries Tomorrow. Hades is pioneering a laser-based drilling system designed to expedite and reduce the costs associated with the extraction of minerals and geothermal energy in Europe. This advancement is particularly significant as the European Union (EU) currently depends almost entirely on imports of critical raw materials, primarily from nations like China.

Co-founder and CEO Max Werner described the past six months as a “hell of a ride,” reflecting on the rapid developments since their pre-seed fundraising in August. He indicated that another fundraising round may be on the horizon by year's end, a sign of the company's potential trajectory in a rapidly evolving market.

The backdrop to Hades' rise is the growing concern about Europe’s vulnerability in the face of geopolitical challenges. In 2026, as tensions escalated, European leaders increasingly recognized the dangers of relying on external sources for critical minerals and energy. The United States has also taken steps to mitigate its dependency, proposing a critical minerals trading bloc and planning a $12 billion stockpile of essential minerals, with an eye toward Greenland's natural resources.

“We see huge interest from politicians and decision-makers outside of this space, and we can’t even help ourselves by all the interest that we are getting from all directions,” Werner stated. He emphasized that critical minerals are “pretty much in everyone's head,” a sentiment echoed during a recent event at Davos where the topic dominated discussions.

“In the last six months, it has become even more difficult in geopolitical terms, and enabling Europe to have its own extraction capabilities for geothermal energy, but also for critical minerals, is as important as it was on day one,” Werner noted, highlighting the urgency of the situation.

The latest funding will enable Hades to expand its workforce significantly. From a modest team of 11 employees in December, the startup aims to grow to 36 by the end of 2026. Additionally, the funding will support the development of a new workshop and the procurement of advanced lasers and machinery for their drilling operations.

Hades has already made strides in its technological development. Werner reported that the startup has successfully tested three critical components: the rock destruction capabilities of its laser, the purging system for clearing lava from boreholes, and the delivery of 200 kilowatts of energy through collaboration with an unnamed European partner. Werner expressed optimism about the future, stating that the company is in discussions for four projects at various stages, with the goal of having its first operational site up and running by 2029.

Reflecting on the global landscape, Werner articulated a stark reality: “This multi-polar world order that we are currently seeing forming right in front of us doesn’t use the dollar as a method of power anymore. It’s now based on access to raw minerals and resources.” He stressed Europe’s precarious position, stating, “Europe is incredibly, incredibly vulnerable in terms of negotiations at the moment, and that’s what we see on the global table. We are a liability.”

For now, Hades is focused on achieving tangible goals within its control. Werner’s “ultimate goal” for the end of this year is to drill down 10 meters while generating 200 kilowatts of energy—an ambitious target that underscores the startup's commitment to addressing Europe’s growing demand for homegrown energy solutions.