China Accelerates Billion-Dollar Race for Brazil’s Strategic Minerals

(Analysis) China has sharply increased its investments in Brazil’s mining sector, targeting minerals vital for modern industry and green technology.

Official data from the Brazil-China Business Council and government agencies show that from 2007 to 2022, Chinese companies invested $4.4 billion in Brazilian mining.

In 2025, they plan to invest at least $3.5 billion more, focusing on regions in Minas Gerais and Bahia. These investments are currently in the licensing phase.

Chinese demand for Brazilian minerals is surging. In the first quarter of 2025, Brazil’s copper exports to China reached $331 million, a 180% increase from the previous year. China now buys 35% of all Brazilian copper.

Manganese exports to China rose by 310%, ferronickel by 253%, and refined copper by 56%. Exports of rare earth compounds, such as yttrium and scandium, reached 419 tons in the first quarter of 2025, seven times more than the total for 2024.

China’s state-owned Nonferrous Trade Co. Ltd. recently acquired the Pitinga tin mine in the Amazon for $340 million. This mine holds Brazil’s largest tin reserve and also contains niobium and tantalum, which are essential for aerospace and electronics.

Brazil’s Lithium and Rare Earth Reserves Attract Chinese Investment

The mine’s estimated operational life is 100 years and includes its own hydroelectric plant. The deal has sparked debate in Brazil, with some officials raising concerns about national sovereignty and the transfer of strategic resources to foreign control.

Chinese electric vehicle giant BYD has also entered Brazil’s mining sector. In late 2023, BYD acquired mineral rights for two plots in the lithium-rich Jequitinhonha Valley. The company established a subsidiary in Brazil with a capital investment of about $695,000.

The lithium sites cover 852 hectares and are close to BYD’s new electric vehicle factory in Bahia, which aims to produce 150,000 vehicles annually. Brazil is the world’s second-largest holder of rare earth reserves after China.

In addition, the Brazilian government is working to support domestic rare earth projects, with nearly $1 billion in funding available through its development bank and science agency.

Officials have reviewed 124 project proposals totaling $15 billion, many focused on producing rare earths for magnets, batteries, and high-tech equipment.

These developments reflect a shift in global supply chains. China is securing direct access to minerals needed for batteries, electronics, and renewable energy. Brazil, with its vast reserves, is a key supplier.

The Brazilian government faces the challenge of balancing foreign investment with national interests, ensuring that the country benefits from its resources while maintaining control over strategic assets.

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