RIO DE JANEIRO, BRAZIL – According to a decree published Wednesday (6), prior authorization is no longer required for the import and export of lithium in Brazil.
Previously, such operations required approval from government agencies such as the Nuclear Energy Commission.
“This measure is part of the government’s efforts to reduce bureaucracy in the mining sector and improve the business climate,” said Pedro Paulo Dias Mesquita, secretary of geology, mining, and mineral transformation, to local media.
The move would attract investment in lithium. The Vale do Jequitinhonha region in Minas Gerais state, where most of Brazil’s lithium reserves are located, could receive R$15 billion (US$2.76 billion) in lithium investment by 2030.
“In addition to the already known activities of lithium companies such as Sigma Lithium, AMG Mineração and [Companhia Brasileira de Lítio] CBL, other companies are in the initial stages of their activities that will likely lead to investments in the entire lithium production chain,” Mesquita said.
Officials estimate that the lithium segment could create more than 7,000 direct jobs.
Lithium is considered strategically important due to expected demand as part of the global energy transition.
LITHIUM
According to a report by consulting firm Ultima Media for Swiss-based ABB, the projected global battery production capacity in 2030 will not be enough to meet demand from the EV auto industry. That’s because electric cars will surpass internal combustion cars by 2036 when 80 battery factories are in operation worldwide.
And although the lithium supply chain in Latin America has not yet reached the stage of battery production, let alone vehicle production, all the experts interviewed agree that the great optimism about the high demand for electric vehicles is well-founded and that now is the time for the countries of the South American Lithium Triangle (Chile, Bolivia, Argentia) to take advantage of this boom and become strategic suppliers, especially for the future automotive industry.
Although Brazil is not part of the Lithium Triangle, its lithium reserves are significant so the country will be part of the expected lithium bonanza.