Brazil, one of the world's top iron ore-producing states, is hoping to attract investors to its lithium supplies in order to meet the increasing demand for this important material in batteries.
The main focus of the investor-friendly approach is to attract investors to produce and export lithium concentrate from Brazil’s hard rock deposits.Lithium Valley in Brazil is a great example of how the mineral-rich nation is looking to tap into the booming demand for the key metal used in electric-vehicle batteries.
To attract investors Brazil plan to develop the whole lithium supply chain, including batteries. But while the Brazilian government won’t be getting into the lithium business, it will be following the lead of its neighbours by pushing for downstream development. The Industry Ministry is studying measures to encourage development of a lithium-based industry.
Brazil also has to address a factor that could have negative impact on investors. The government currently has to eradicate illegal mining, which currently spans an area larger than that of industrial mining. The government has vowed to crack down on Brazil’s illegal gold rush, removing unlicensed miners, from indigenous lands.
In 2022, Brazil was the fifth-largest producer of silver, white metal. Vale do Jequitinhonha hosted prospective producers including Atlas Lithium Inc. and Latin Resources. In April, HTX Energy started producing lithium concentrate in the region.