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CBMM, Which Has Already Generated Over R$ 11 Billion from Niohium Sales for Steel Applications, Expects Even Higher Profits
Companhia Brasileira de Metalurgia e Mineração, CBMM, located in Araxá (MG), holds 80% of the world niobium market, a metal increasingly used in the metallurgical industry, mainly in the production of stronger steel. As a result, it celebrates its record results from 2021.
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Inaugurated 60 years ago, CBMM has significantly strengthened from selling niobium particles to steel mills that specialize in incorporating the material into steel products.
Reported by Leo Branco in an article for Exame, CBMM achieved R$ 11.4 billion just last year, 67% more than the revenue in 2020. In addition, net income (R$ 4.5 billion) also increased significantly, being 78% above the amount obtained in the previous year.
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The reason for the high numbers is the recovery of businesses affected by the pandemic, considering that China, one of CBMM’s main customers and the largest steel producer, was the first epicenter of Covid-19.
The forecast for 2022 by Ricardo Lima, CBMM’s vice president, is a 20% increase in the company’s negotiations, showing confidence in diversified bets.
One of these main bets is niobium itself, which, along with other metals, can strengthen steel. According to CBMM studies, only 100 grams of niobium are needed for 1 ton of steel to gain strength while also becoming more malleable.
The benefits of Niobium have put the company at an advantage compared to other metallurgical companies. Thus, CBMM’s mine in Araxá has the potential for 800 million tons, making it the largest active mine on the planet.
Considering that, currently, 1 kg of the metal costs around $40, the company could spend some time just observing its profits, without any losses. However, Lima states: “From the beginning, our challenge has been to create the markets in which we operate. It is no different now.”
In this sense, in recent years, CBMM has invested R$ 3 billion in an expansion project for the Araxá industry to increase production by 50%, reaching around 150,000 tons of niobium per year, 30,000 tons above global demand. This production growth aims to make niobium a “multi-purpose” metal and supply it for new applications. Today, only one-tenth of Araxá’s production is allocated to emerging uses outside the steel chain, with the rest mixed into steel in beams and rebars.
According to CFO Alex Amorim, the goal is to increase the share of 10% to 40% by 2030, with a focus on investments in the electric vehicle market. The niobium used in parts of the batteries of these vehicles brings benefits: niobium anodes and cathodes contribute to faster recharging and longer-lasting batteries compared to carbon batteries.
Such advantages have already attracted the attention of automakers like Volkswagen and the technology company Toshiba. By the end of 2022, the market will receive electric buses with batteries produced from niobium extracted by CBMM, assembled by Volkswagen in Resende (RJ).
Still pursuing growth through new partnerships, CBMM invested in two startups just last year, the British Echion and the American Battery Streak, aiming for new developments in materials for lithium-ion batteries. In 2021, niobium sales for batteries totaled R$ 7.5 million, while the estimate for 2022 is that this amount will be 10 times greater.
CBMM has made investments of R$ 60 million in the development of battery technologies, corresponding to about 25% of the total invested in innovation. As a result, in 2022, investments in innovations are expected to increase by at least 40%, reaching R$ 278 million, setting another record.
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