Brazil unveils $1.3 billion plan to transform strategic minerals sector for global energy transition

Brazilian financial organisations Finep and the National Bank for Economic and Social Development (BNDES) have launched a public call for proposals to promote business plans aimed at transforming the nation’s strategic minerals sector.

With a budget of approximately $1.3 billion, the two institutions have unveiled plans to invest in production capacity and in research, development and innovation (RD&I), to support Brazil’s minerals sector for the energy transition and decarbonisation.

Finep is an organisation of the Brazilian federal government under the Ministry of Science of Technology, devoted to the funding of science and technology in the country.

BNDES is a development bank structured as a federal public company associated with the Ministry of the Economy of Brazil created to provide long-term financing for endeavours that contribute to the country’s development.

Credit lines available

The two financial institutions are offering credit lines, equity participation in companies and non-reimbursable resources with the goal of developing the chain of sustainable strategic materials in the country.

Finep identified the development of lithium, rare earth, nickel, graphite and silicon chains, among others, as well as the mobilisation of investments for the manufacture of components: battery cells, photovoltaic cells and permanent magnets as a major focus for the collaboration.

The support will cover industrial-scale plants and also pilot or demonstration plants, research and studies necessary for the viability of new industrial capacities, depending on the stage of the projects and technologies involved. With this, this call for proposals may leverage investments in the coming years in a volume of five to ten times larger than the budget made available.

Finep president, Celso Pansera, said Brazil’s strategic mineral production projects are among the best in the world.

World critical minerals powerhouse

He added that the Brazilian territory has the largest reserve and production of niobium in the world the 2nd largest reserve of natural graphite, the 3rd largest reserve of nickel, the 3rd largest reserve of rare earths, among others, in addition to being responsible for the fifth largest production of lithium and the third largest production of silicon.

“Brazil, with its science and vast reserves of strategic minerals, is uniquely positioned to lead the global energy transition. We do not want to be just a supplier of natural resources, but a protagonist in creating a more sustainable future, in which technologies result in a greener, low-carbon economy and contribute to a better quality of life for people, now and for future generations,” said Finep President Celso Pansera.”

“The country is on its way to consolidating itself as one of the largest suppliers of critical materials for production chains included in the energy transition and decarbonization agenda, in addition to being applied in other technologies.”

Different links in the supply chain

According to BNDES president Aloizio Mercadante, the financiers expect to see stakeholders from different links in the production chains respond to the call.

“Miners and holders of technologies and experience in transformed materials and manufactured components inside and outside the country will be able to form partnerships and count on the best financing options for industries in Brazil,” he said.

“The call represents an important step forward in the mineral sector to achieve the Brazilian government’s objectives of expanding the industry’s production capacity in the context of sustainable and technological development of the new industrial policy and the ecological transformation plan.”