The Vale do Jequitinhonha region in Minas Gerais, Brazil, is set to become the country’s primary lithium production hub, attracting 78% of the total investment allocated to lithium exploration in Brazil through 2029. According to the Brazilian Mining Institute (Ibram), an estimated $906 million will be directed toward the region, known as Brazil’s Lithium Valley. The announcement was made during a press conference on June 5.
Two major players currently operate lithium extraction projects in Vale do Jequitinhonha:
Ibram’s projections highlight the growing importance of Minas Gerais in Brazil’s $16.5 billion mining sector investment plan through 2029, which spans multiple mineral industries. Nationally, the total mining investment forecast over the same period is $68.4 billion.
Brazil’s mineral sector reported revenues of R$ 270.8 billion in 2024, marking a 9.1% increase from 2023. Minas Gerais retained its leading position, accounting for R$ 108.3 billion of the total, with a 4.5% year-on-year growth. Pará followed, reaching R$ 97.6 billion, experiencing a 14.4% surge—more than triple the growth seen in Minas Gerais.
The most valuable mineral commodities in 2024 included:
✅ Iron Ore – R$ 160.7 billion (+8.6%)
✅ Gold – R$ 23.9 billion (+13.3%)
This growth was largely attributed to increased gold and iron ore production, following a recovery in gold extraction operations, which had faced significant downturns in 2023.
While Minas Gerais remains at the center of Brazil’s mining activity, Ibram has revised its investment outlook for the state due to the completion of certain projects. “Several operational enhancement projects across different mining sites have concluded, and in the past year, multiple tailings dams in Minas Gerais have been decommissioned,” stated Júlio César Nery, Ibram’s Director of Sustainability and Regional Affairs.
During the press conference, Ibram President Raul Jungmann addressed potential trade policy shifts in the U.S., particularly the possibility of higher tariffs on imported goods under a potential Donald Trump administration. Jungmann suggested that Brazil’s mining sector would remain largely unaffected, as 80% of the country’s mineral exports are destined for Asia, with China alone accounting for 69.7% of these shipments.
He also highlighted opportunities in expanding trade with Europe, emphasizing the potential benefits of a Mercosur-European Union trade deal. “It would be advantageous to diversify demand beyond Asia. I often say that if China catches a cold, we get pneumonia,” Jungmann remarked.
With Vale do Jequitinhonha positioned as a central hub for lithium investments, Brazil is solidifying its role as a key supplier in the global energy transition. As production ramps up, stakeholders will closely monitor regulatory shifts, market conditions, and international trade dynamics shaping the future of critical minerals in the country.
