Munich-based startup Hades has secured €5.5 million in pre-seed funding to develop advanced drilling technologies that could reshape Europe’s approach to critical mineral extraction and geothermal energy production. Project A led the investment round, which the company describes as “massively oversubscribed.”
The startup enters a market where Europe faces growing dependency on mineral imports from China and Turkey, particularly for lithium and other materials essential for electric vehicle batteries and artificial intelligence infrastructure. This dependency has sparked concerns about supply chain resilience across the continent.
Drilling Down on European Independence
Dr. Max Werner, co-founder and CEO of Hades, identifies drilling costs as the primary barrier to European mining competitiveness. According to Werner, drilling expenses account for “50%-70%” of typical European mining project costs, a figure he characterizes as problematic for the industry’s viability.
The company’s approach centers on proprietary drilling systems designed to reduce both time and cost barriers that have historically made European mineral extraction economically challenging. Hard rock formations across Europe have traditionally made access to underground resources more expensive compared to other global regions.
“This project, in the end, is nothing other than an extension of a defence project” ~ Dr. Max Werner, co-founder and CEO, emphasizing Europe’s need for greater independence.
Strategic Funding and Defense Connections
The funding round attracted notable investors beyond Project A, including Visionaries Tomorrow and London-based Founders Factory, which recently partnered with mining giant Rio Tinto on an accelerator program. Angel investors include executives from prominent defense and robotics companies, such as Quantum Systems co-founder Florian Seibel and RobCo founder Roman Hölzl.
Werner’s background in the German Armed Forces and previous experience as a defense startup founder influences the company’s strategic positioning. He views mineral security as integral to European defense capabilities, arguing that the defense industry requires Europe-controlled supply chains.
Operational Timeline and Resource Allocation
Approximately 90% of the new capital will fund technology development, with remaining funds supporting exploration activities to identify locations for the company’s initial geothermal energy operations. The five-person team plans to double in size within six months and reach 20 employees within a year.
Björn Dressler, former chief operating officer at German rocket manufacturer Isar Aerospace, joins Werner as co-founder, bringing aerospace industry expertise to the mining venture.
Revenue Model and Market Approach
Hades plans to generate revenue through dual channels: selling geothermal energy directly to local communities and marketing extracted critical minerals to industrial customers and commodity exchanges like the London Metal Exchange.
The company’s near-term strategy focuses entirely on technology development for the next year, followed by regulatory approval and licensing processes for its first geothermal power plant drilling project.
“We are not a technology company, we are not selling technology. We are ultimately providing these commodities” ~ Dr. Max Werner, co-founder and CEO.
Environmental Considerations and Community Relations
Mining operations in Europe face significant public scrutiny, particularly in regions like Germany’s Rhine Valley where lithium reserves have generated both commercial interest and local opposition due to environmental concerns. Werner acknowledges these challenges while advocating for transparency in the company’s communications.
The startup positions itself as employing modern, sustainable mining technologies rather than traditional methods that have historically caused environmental damage. Werner emphasizes the company’s commitment to responsible extraction practices while maintaining that mineral independence requires renewed European mining activities.
“If we really want to be resilient, we ultimately need to mine again” ~ Dr. Max Werner, co-founder and CEO.
Broader Market Context
Hades joins a growing field of mining-focused startups attracting venture capital attention. The company received its first term sheet within a week of seeking funding, indicating strong investor appetite for European mineral security solutions.
The startup’s name references the Greek god of the underworld, who Werner notes was also considered the deity of mining and was traditionally invoked before mining projects commenced. Despite the name’s association with death in mythology, Werner views it as appropriate for the industry context.
As artificial intelligence development and electric vehicle adoption accelerate demand for critical minerals, European policymakers increasingly recognize the strategic importance of domestic mineral production capabilities. Hades positions itself to address this need through technological innovation rather than traditional mining approaches.
