It is estimated that by 2030, Brazilian lithium production could represent an investment of more than R$15 billion in the region of Minas Gerais!
With the aim of positioning Brazil in the global market for batteries for electric vehicles, whose demand should reach 2 million tons by 2030, the government published on July 7, a decree that reduces the restrictions on the export of lithium and its derivatives
The case for passing this new legislation is far messier than expected. In theory, the vote should have taken place since Deputy Danilo Forte, also known as rapporteur for the PEC on the state of emergency and social benefits, kept the text approved in the Senate so that everything flowed smoothly, but the TCU (Tribunal de Contas da União – Federal Government external control body) issued an investigation warrant against the action.
Minas Gerais wins lithium production factory for batteries
According to the Ministry of Mines and Energy, everything indicates that with this new method the advancement of production capacity and components and batteries will increase significantly. That is the objective, to attract investment for research and mineral production. According to research, it is estimated that by 2030, Brazilian lithium production may represent an investment of more than R$15 billion in the Jequitinhonha Valley region – Minas Gerais. This does not include the annual R$100 million related to royalties through the Financial Compensation for Mineral Exploitation (CFEM)
The region of Vale do Jequitinhonha, mentioned above, already has some projects, such as the construction of a plant focused on the production of lithium for batteries, carried out by the Canadian mining company Sigma Lithium, whose delivery is scheduled for the fourth quarter of the year. At first, production will be 270 thousand tons/year, but the projects are that from 2024, production will double and will become 531 thousand tons/year.
World lithium demand expected to reach 2 million tons by 2030
Lithium, an ore, has several uses, among them, the main focus is on the manufacture of vehicle batteries where the component is used as a traction battery, that is, it stores electricity that will be used.
But for this to actually happen, an export authorization for the material is required, which has already been granted in Decree 11.120/2022:
Art. 1º "Foreign trade operations of lithium minerals and ores, organic and inorganic chemical products, including their compositions, manufactured based on lithium, metallic lithium and lithium alloys and their derivatives are allowed.”
S&P Global estimates that world demand for lithium is expected to reach 2 million tonnes by 2030.
