Chinese electric vehicle manufacturer BYD has taken a significant step into the mining sector by acquiring mineral rights for two plots in Brazil’s lithium-rich region, as revealed by public records. This move marks BYD’s most definitive foray into mining strategic minerals in the Western Hemisphere, particularly in its largest market outside of China.
The acquisition, which occurred in late 2023 through BYD’s subsidiary Exploracao Mineral do Brasil, was established in May of the same year. The mineral rights cover 852 hectares in Coronel Murta, located in the Jequitinhonha Valley, Minas Gerais—a region known for its promising hard rock lithium deposits.
These plots are situated approximately a half-day’s drive from BYD’s new factory project in northeast Brazil, which is set to produce up to 150,000 electric vehicles annually. The subsidiary was formed with a capital of 4 million reais (about $695,000) and reported a profit of roughly 213,000 reais from currency fluctuations in 2023, although it remains in the research phase without any operational revenues.
BYD’s interest in Brazilian lithium aligns with the growing global competition for strategic minerals, as evidenced by recent visits from U.S., Saudi, and Chinese delegations. Unlike its South American neighbors, Brazil has maintained a lighter state presence in its lithium sector, easing export controls in 2022 and providing a more open market for investment.
The company has previously engaged with major Chinese miners and was one of six firms permitted to bid on a lithium project in Chile last year. Reports also indicate that BYD has been in discussions with Sigma Lithium, Brazil’s largest lithium producer, regarding potential supply agreements or joint ventures.
The neighboring Atlas Lithium project in Coronel Murta is currently in the research phase, having undergone initial geological mapping. Atlas CEO Marc Fogassa acknowledged BYD’s investment, suggesting it enhances the value of his own company’s holdings in the area.
However, the path to production for mining projects in Brazil can be lengthy, often taking between eight and 15 years if deemed economically viable, according to legal experts in the mining sector. As BYD continues to navigate this complex landscape, its commitment to securing lithium resources underscores its strategic ambitions in Latin America’s largest economy.