Brazil’s Strategic Mineral Sector Booms as Clean Energy Drives Demand

Brazil’s strategic mineral sector is experiencing unprecedented growth, fueled by the global shift towards clean energy.

Investments in this sector are projected to increase by nearly 90%, reaching R$17.2 billion ($3.13 billion) by 2028, according to the Brazilian Mining Institute (Ibram).

The demand for strategic minerals is soaring due to their crucial role in solar panels, wind turbines, electric vehicle batteries, and electronic components.

Offshore wind farms require 13 times more strategic metals than natural gas plants for equivalent energy production.

Solar plants use five times more, while electric vehicles consume an average of 200 kg of strategic minerals, six times more than combustion engines.

Lithium, essential for automotive batteries, is experiencing a surge in demand. Global industrial lithium carbonate equivalent (LCE) demand is expected to reach 1.1 million tons this year.

It is projected to grow by 30% to 1.45 million tons by 2025. Sigma Lithium, operating in Jequitinhonha Valley, has begun commercial production with an annual capacity of 270,000 tons of concentrated lithium.

They’re investing R$500 million ($90.91 million) in a second plant to double their production capacity.

Strategic Investments in Brazil’s Mineral Sector

Australian company Pilbara Minerals has entered the Brazilian market with a $370 million investment in a lithium project in Salinas. They also plan to invest an additional R$2.2 billion ($400 million) for the operation.

AMG Brasil is expanding its lithium production, investing $50 million to increase capacity to 130,000 tons annually. They’re also planning a R$280-300 million ($50.91-54.55 million) LCE conversion unit to be operational by 2028.

The Appian Capital fund is investing R$350 million ($63.64 million) in a graphite processing plant in Itagimirim, Bahia, with potential expansion to 120,000 tons per year.

In addition, graphite comprises 95% of electric vehicle battery anodes, with each battery using an average of 68 kg.

Appian Capital also operates two other strategic mineral assets in Brazil: Atlantic Nikel produces 110,000 tons/year of nickel concentrate, and Mineração Vale Verde produces 70,000 tons/year of copper concentrate.

These investments highlight Brazil’s growing importance in the global strategic mineral supply chain, driven by the clean energy transition.