Brazil’s Critical Minerals Could Add $48 Billion to Economy by 2050

A new report by Deloitte and AYA Earth Partners reveals Brazil’s untapped potential in critical minerals, which are essential for clean energy technologies.

The study highlights that strategic investments in mining, processing, and refining these resources could add up to R$243 billion ($48 billion) to Brazil’s GDP over the next 25 years. This projection underscores the country’s opportunity to position itself as a global leader in the energy transition.

Brazil holds approximately 10% of the world’s reserves of critical minerals, including the largest niobium reserves, the second-largest graphite reserves, and significant deposits of rare earth elements and nickel.

Despite this, Brazil contributes only 0.09% of global production. The report stresses that advancing along the value chain by refining extracted minerals could significantly boost economic returns and reduce reliance on foreign refining, which China currently dominates.

The report outlines three key economic scenarios. By focusing solely on mineral beneficiation (processing extracted minerals), Brazil could add R$30 billion ($6 billion) to its GDP. This is projected to happen by 2030.

Expanding into new mines and increasing beneficiation could raise this figure to R$233 billion ($46 billion) by 2050. Refining these minerals domestically could push the total impact to R$243 billion ($48 billion).

Brazil’s Mining Challenges and Opportunities

However, challenges remain. Only 35% of Brazil’s territory has been mapped for mineral potential, and obtaining mining licenses takes an average of 16 years. The lack of clear regulatory frameworks further hampers investment and development.

Experts argue that streamlined policies and incentives are essential for attracting investors and enabling sustainable growth. Globally, demand for critical minerals is expected to triple by 2040, driven by clean energy technologies like electric vehicle batteries and wind turbines.

While countries like China dominate refining due to long-term policies, Brazil’s clean energy matrix provides a competitive advantage. It positions the country to produce low-carbon minerals efficiently.

The findings suggest that with strategic planning, Brazil could bolster its economy. Additionally, it could lead to sustainable mining practices.

Upcoming events like COP30 in Belém present an opportunity for Brazil to showcase its potential. The country can position itself as a key player in the global green economy transition.

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