Brazil Opens Up Lithium Market, Has Potential To Become World Leader

Brazil Opens Up Lithium Market, Has Potential To Become World Leader

The Brazilian government has recently issued an executive order relaxing the rules on Lithium exports and has the potential to become a global leader in the Lithium market. At present, Brazil accounts for only 1.5% of the global production of Lithium as currently only two companies are operational in the region- CBL and AMG Brasil. Now that the market has opened to the world, this share is likely to cross 5% in next ten years. Ana Cabral-Gardner, cochief executive, Sigma Lithium Corp, said, “Brazil will be in an unbeatable position to supply North America and Europe, the so-called Atlantic chain, where the final consumers of electric vehicles are.”

Bhago Mobility, lithium battery pack

An old player in this segment, Sigma has decided to open up its market to the rest of the world facilitating the investment worth $ 2.81 billion by 2030. It doesn’t sound too ambitious given that Lithium, a crucial component of the electric car industry, is increasingly becoming a more sought-after mineral.
Ana Cabral-Gardner shared that the country had an “anachronistic regulation” linking Lithium to nuclear energy, “a regulatory loop that did not make the product competitive” in Brazil. Sigma’s Brazilian unit is looking to kickstart the production of Lithium by year-end, she added. The company holds 28 concessions to explore the mineral in the South American country. Three of these have received certification as per the U.S. and Canadian standards and hold a joint reserve of 85.7 million tonnes.

Brazil has set its sights particularly on the expansion of Lithium production in the Jequitinhonha Valley in Minas Gerais, as shared by the Mines and Energy Ministry.

India is also poised to emerge as a promising market for the mineral. Its relationship with China, however, has turned cold, bearing an impact on the import of Lithium. Left with few options, India has turned to Australia eventually, which has committed to the supply of Cobalt and Lithium, two key components needed for India’s electric vehicles. This will also aid solar power, defence and other strategic segments.

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