In times of global economic crisis linked to more than two years of a pandemic and a war in Eastern Europe, Brazil can be a good alternative.
One of the main themes on the world economic agenda is the energy transition. The objective is to transform all the generated energy (or a good part of it) into “clean energy”, which can only be produced with the use of mineral resources, which are present in the production of wind turbines, solar panels, hybrid vehicles, electric vehicles, electronic devices, among others.
There is great demand on a global scale for the research and production of minerals such as lithium, cobalt, and nickel, which are used to produce more efficient batteries in terms of energy storage and performance. Copper is used to meet electricity demands.
In this context, lithium stands out, a strategic mineral for Brazil, essential to the referred transition and attractive for investments in the automotive industry (to produce electric vehicles). High demand has driven the announcement of large investments in projects along the entire production chain, from mining, through mineral processing and even the production of components and batteries.
As a result, the Brazilian Ministry of Mines and Energy issued Decree No. 11,120/2022, promoting the opening and dynamization of the Brazilian lithium market.
The objective is to allow foreign trade transactions of lithium minerals and ores and their derivatives, which will not be subject to criteria, restrictions, limits, or conditions of any nature, except those provided for by law or in acts issued by the Chamber of Foreign Trade – CAMEX.
This measure has the potential to attract investments to produce electric vehicles in Brazil.
A study carried out by S&P Global indicates that the lithium demand will possibly reach 2 million tons by the year 2030. Brazil has the potential to be a major producer of the ore, strengthening its position in Latin America, which concentrates most of the world’s lithium reserves.
The Mining Practice group of our firm is available to answer any questions you may have. Just send an email to the Mining Team: mineracao@siqueiracastro.com.br
