Newly Discovered Lithium Reserves in Minas Gerais Cause a “Boom” in the International Market

The ANM Reports That Brazil Will Become One of the Largest Global Powers in Lithium Exploration, a Mineral Widely Used in Battery Manufacturing. Global Market Attention for This Sector Is on the Jequitinhonha Valley – MG

The favorable international demand and a recent discovery of lithium reserves in Brazil have sparked a rush for the metal, used in electric batteries, reports Folha de São Paulo. Two ongoing projects will elevate Brazil to the status of one of the largest lithium-producing countries in the world in the next decade, according to data from the National Mining Agency, ANM.

The ANM reports that 117 lithium research requests have been filed as of December. This is more than three times the amount from last year and nearly ten times the number of requests in 2016.

There is much interest in bringing high expectations for the Jequitinhonha Valley, in northern Minas Gerais, one of the poorest areas of Brazil, but with high potential given its lithium reserves.

Lithium, sometimes called the “fuel of the future” for its potential in electric vehicles as a substitute for combustion engines, is a welcome product in international markets.

Lithium prices have recently surged due to a rush to find new reserves, which, in turn, were caused by developed countries’ plans to reduce carbon emissions. Automakers like Volkswagen have already announced goals to end the production of fossil fuel-powered cars, and several European countries have set deadlines for combustion engines.

Currently, Brazil’s lithium production is on a small scale, concentrated in Araçuaí, Minas Gerais, aimed at the domestic market for lubricants and ceramics. However, new investments in the development of new reserves are already making changes in the sector.

“Brazil’s participation in the lithium market has been modest. But now, with the demand for electric motors, the industry is waking up,” says Ivan Jorge Garcia, a mineral resources specialist at ANM.