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Government Plans BNDES-Subsidized Credit and Debentures to Boost Lithium, Nickel, and Other Critical Mineral Mining in Brazil

Published on 18/08/2025 at 07:19
Updated on 18/08/2025 at 07:22
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Government Prepares National Plan for Critical Minerals With BNDES Incentives and Issuance of Debentures Aiming at Industrialization and Energy Sovereignty

According to information from Folha de São Paulo, the Brazilian government is working on a national plan for critical minerals that includes incentives for companies in the sector.

The central idea is to use subsidized credit and new financing instruments to stimulate the extraction and processing of inputs.

Brazil holds one of the largest reserves of rare earths on the planet.

The plan is expected to be completed this year and gains strength given the interest of the United States in these minerals, which are essential for sectors such as defense.

These elements, essential for the production of superconductors, wind turbines, electric car motors, semiconductors, and military equipment, are currently dominated by China, which concentrates most of the global production.

Dependence and Vulnerability

Washington sees Brazil as an opportunity to reduce its dependence on Beijing. Currently, China not only controls extraction but also dominates the refinement of rare earths, a stage where minerals gain strategic value.

This places the U.S. in a vulnerable position, especially in a context of trade and military tensions. For the U.S. government, diversifying suppliers is a matter of national security.

Debentures and BNDES on the Agenda

According to government members, two fronts are under analysis. The first would allow extraction companies to issue incentivized debentures.

The second envisions the creation of a new line of loans from BNDES.

Additionally, the mechanisms could also be used by companies that do not operate directly in extraction but in other stages of the production chain.

Thus, the incentive would reach more activities, enhancing the technological development of the sector.

The Minister of Mines and Energy, Alexandre Silveira, stated that adding value within national borders is a guideline of the plan.

For him, the country should not be merely an exporter of commodities.

Long-Term Agenda

Although the plan has been discussed since the beginning of the Lula 3 government, it has not yet been officially presented. Nevertheless, critical minerals already occupy a central position in the development agenda.

The topic is set to integrate the goals of the national long-term strategy until 2050, which is being formulated by the Ministry of Planning.

The government argues that the activity needs to be sustainable, safe, and innovative, ensuring sovereignty and a leading role in the energy transition.

Growing Global Demand

International interest is driven by the substitution of fossil fuels. Minerals such as lithium, cobalt, nickel, graphite, niobium, copper, tantalum, and uranium are essential for wind turbines, batteries, and electric vehicles. Therefore, demand is expected to grow.

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Fabio Lucas Carvalho

Journalist specializing in a wide variety of topics, such as cars, technology, politics, naval industry, geopolitics, renewable energy, and economics. Active since 2015, with prominent publications on major news portals. My background in Information Technology Management from Faculdade de Petrolina (Facape) adds a unique technical perspective to my analyses and reports. With over 10,000 articles published in renowned outlets, I always aim to provide detailed information and relevant insights for the reader.

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