The mining and metallurgical company CBMM announced a total investment of R$ 1,2 billion for its newest project in Araxá, Minas Gerais, the construction of a niobium processing plant to expand the exploitation of the ore in the region.

The Brazilian Metallurgy and Mining Company (CBMM) announced last Wednesday, (08/06), its newest venture in the field, a niobium processing plant in the region of Araxá, Minas Gerais. For the construction of the project, the company will make an investment of R$ 1,2 billion, with the expectation of making ore production even more efficient over the next few years.

CBMM's new niobium processing plant will receive an investment of R$ 1,2 billion for the construction project of the enterprise in Minas Gerais 

CBMM is increasingly looking for new growth opportunities in the national mining and metallurgy market and will now invest in the state of Minas Gerais, more specifically in the Araxá region, for the construction of a new niobium processing plant. The company is the world leader in the niobium oxide-based alloys market and will invest R$ 1,2 billion to ensure an efficient production chain in the new venture. 

The Araxá region, in the state of Minas Gerais, already has the company's industrial complex and will now host the new factory, the construction of which could begin later this year, around the last few months. However, the construction project for the new niobium processing plant in Minas Gerais still needs to be approved by the CBMM board in order to continue being developed. With a total investment of R$ 1,2 billion for the project, the company will gain the capacity to produce over 20 thousand tons of niobium oxide per year.

This is a product that is increasingly sought after in the (inter)national market, as it has several noble applications, such as the manufacture of electric batteries, which are being widely used in the quest for energy transition in nations around the world.

Finally, CBMM highlighted that the company's plan is designed for 2030 and the application in electric batteries for cars and other vehicles will represent 35% of business. Thus, a total investment of BRL 8 billion will be required over the next 8 years for this to happen. 

New niobium factory will be essential for the Brazilian company to expand business aimed at the production of electric batteries through ore processing

CBMM's new bet for the state of Minas Gerais, with the construction of the niobium factory, is the commercialization of the product for use in electric batteries over the next few years. In the company's business portfolio, the most advanced project is a partnership with Toshiba, in which said with tests with automotive customers in Japan and Brazil, where VW Caminhões evaluates the use in electric buses.

Thus, Eduardo Ayrosa Ribeiro, president of the company CBMM, commented on the current focus with the construction of the new factory and the contract with Toshiba and highlighted: “In this partnership we are in negotiations with customers and production on a commercial scale will be accelerated from 2025 to against. Our focus is on niobium products, using the company's long-term ore reserve. In the new scenario, we will be able to have three more oxide factories, of 20 thousand tons each, two for sure”.

Now, CBMM is still waiting for the approval of the project by the company's board to start the work plan for the construction of the new niobium processing plant and expects to be able to finalize the approval by the end of this year.