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Brazilian States Dominate Nickel Production in Brazil — From Stainless Steel to Electric Cars, Brazil Stands Out with the 3rd Largest Nickel Reserve in the World

Published on 25/08/2025 at 09:43
Updated on 25/08/2025 at 11:56
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Brazil appears on the world map of nickel as the owner of one of the largest reserves on the planet. The silver-white metal, used in the production of stainless steel and in electric vehicle batteries, has an increasingly strategic role in the global economy and puts the country in a prominent position.

Nickel, a silver-white metal, resistant to corrosion and with high added value, occupies a central space in the current debate about clean energy, technological innovation, and industrial competitiveness.

Considered strategic by the Brazilian government, the mineral is one of the bases for the production of stainless steel and electric vehicle batteries, sectors that shape both the current economy and the future of global mobility.

Significant Reserves, Modest Production

According to the United States Geological Survey (USGS), Brazil holds about 16 million tons of nickel reserves, making it the third largest holder globally, behind only Indonesia (55 Mt) and Australia (24 Mt).

Despite the privileged position in terms of reserves, production is still considered modest.

In 2023, only 89 thousand tons were produced, which represented 2.47% of the global market and placed the country in the ninth position among producers.

Brazil, however, is the only Latin American representative among the top ten.

The National Mining Agency (ANM) points out that the exploration of the ore generates about R$ 47 million per year in fees, a figure that shows the growth potential of the industry if there are investments at scale.

Where Is Brazilian Nickel

Exploration is concentrated in three states: Goiás (60%), Pará (28%), and Bahia (12%).

The predominant model is open-pit mining, accompanied by beneficiation plants that transform the ore into a high-value product.

In Goiás, Anglo American is responsible for two prominent assets: the Barro Alto plant, located in the city of the same name, and the Codemin unit, in Niquelândia.

Together, they produced 39.4 thousand tons in 2024 and project between 37 and 39 thousand tons for 2025.

These plants operate through pyrometallurgical processes, which involve ore preparation, roasters and electric furnaces, refining, and shipping. The entire cycle is designed to increase efficiency and reduce losses.

Export and Buyer Markets

According to the Ministry of Mines and Energy, much of the nickel extracted in Brazil is processed internally and then exported.

The main destinations include United Kingdom, China, Belgium, Spain, and United States.

This movement shows how Brazilian nickel is integrated into global value chains, serving both the metallic alloys sector and the emerging market for electric vehicle batteries.

Properties That Make Nickel Valuable

Nickel is classified as a non-ferrous metal and can be found in two main forms: sulfide (primary) and lateritic (oxidized). This geological versatility is reflected in its wide range of applications.

Among its characteristics, the following stand out:

  • Resistance to oxidation and corrosion, making it essential in aggressive environments.
  • Ability to improve properties of metallic alloys, enhancing hardness, ductility, and mechanical resistance.
  • Magnetic compatibility, important for electronics.

These attributes make nickel a fundamental input for strategic industries.

Nickel and Its Combinations

The great difference of nickel lies in its ability to combine with other metals to produce high-performance alloys and materials. Some practical examples:

  • Nickel + Copper, Molybdenum, Chromium, or Vanadium → result in steel with mechanical resistance, used in construction, naval industry, and aerospace.
  • Nickel + Iron → creates magnetic circuits, such as those used in transformers, motors, and electronic systems.
  • Nickel + Lithium, Cobalt, Manganese, Graphite, Aluminum, Steel, and Copper → make up the batteries and components of electric vehicles.

These combinations explain why nickel has ceased to be just a “metal for pots” and has taken on a strategic role in the energy transition.

Stainless Steel: The Largest Destination

Despite the growing relevance in the battery sector, the largest share of global nickel consumption still lies in stainless steel. Pots, appliances, cars, pipes, and even coins depend on the metal.

This mass usage is what has historically sustained demand. But the new frontier of growth comes from electric mobility and renewable energies, which require increasingly powerful and durable batteries.

Nickel and the Revolution of Electric Cars

Electric cars are perhaps the best example of how nickel has become strategic. The most advanced batteries — such as the NMC (Nickel-Manganese-Cobalt) and NCA (Nickel-Cobalt-Aluminum) — utilize high nickel content to ensure greater energy density and range.

Furthermore, other metals complement the process:

  • Graphite, in the anode.
  • Copper and aluminum, in cables and collectors.
  • Steel and aluminum, in vehicle structures.

In other words, the transition to electric mobility directly depends on a chain that has nickel as one of its pillars.

Agriculture Also Benefits

Nickel, although better known in industry, also has applications in agriculture. Studies indicate that it can increase agricultural productivity, reduce the occurrence of diseases such as Asian rust, and improve the sustainability of crops.

This further expands the importance of the metal, showing that its influence goes beyond the boundaries of heavy industry.

Challenges and Opportunities

Brazil, with its significant reserves, faces the challenge of transforming this potential into productive leadership.

Currently, the contrast between the 3rd position in reserves and the 9th in production reveals limitations in investment, infrastructure, and technological innovation.

On the other hand, the growing global demand, driven by the automotive industry and the energy transition, opens up opportunities for expansion.

If the country invests in extraction and processing technology, it could not only increase its production but also capture greater added value, instead of exporting just raw material.

Economic and Social Impact

Nickel drives a chain that involves mining, beneficiation, steelmaking, automotive industry, electronics, and even agriculture.

It generates direct jobs in the mines and plants, revenues for states and municipalities, and boosts exports.

According to the ANM, the collection from fees is R$ 47 million per year, but this number could grow substantially if production expansion and diversification of industrial destinations within the country occur.

A Strategic Asset for the Future

The world is moving towards reducing carbon emissions and seeking sustainable alternatives. In this scenario, nickel emerges as a global strategic asset, and Brazil, owning the third largest reserve, has a decisive role to play.

The question now is whether the country will invest to stop being just a mineral exporter and take the lead in the production of high-value-added inputs, such as batteries and specialty alloys.

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Fabio Lucas Carvalho

Jornalista especializado em uma ampla variedade de temas, como carros, tecnologia, política, indústria naval, geopolítica, energia renovável e economia. Atuo desde 2015 com publicações de destaque em grandes portais de notícias. Minha formação em Gestão em Tecnologia da Informação pela Faculdade de Petrolina (Facape) agrega uma perspectiva técnica única às minhas análises e reportagens. Com mais de 10 mil artigos publicados em veículos de renome, busco sempre trazer informações detalhadas e percepções relevantes para o leitor.

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