Chinese electric vehicle giant BYD has taken a significant step into Brazil’s lithium mining sector, securing mineral rights for two plots in Brazil’s Lithium Valley. These acquisitions were made in late 2023 through BYD’s newly established subsidiary, Exploracao Mineral do Brasil, according to public records reviewed by Reuters.
This move marks BYD’s most concrete venture into mining strategic minerals in the Western Hemisphere—a critical region for global EV supply chains. The plots are strategically located near BYD’s factory project in northeast Brazil, as well as neighboring Atlas Lithium’s (ATLX.O) mining plots.
BYD’s Brazilian mining subsidiary was established in May 2023 with a share capital of 4 million reais (USD $695,000). Public documents indicate that the company earned a profit of 213,000 reais last year due to exchange rate gains but is currently still in the research phase, with no operational revenue to date.
This latest acquisition follows BYD’s global efforts to secure lithium supply, including stake purchases in major Chinese miners and its participation in a Chilean lithium project bidding process last year. BYD also announced plans for a lithium cathode plant in northern Chile, showcasing its increasing investments in strategic minerals.
Brazil’s lithium sector, which primarily relies on hard rock deposits, has attracted interest from U.S., Saudi, and Chinese delegations. Unlike neighboring countries that heavily regulate their lithium industries, Brazil eased its lithium export controls in 2022, fostering a more open market environment.
BYD’s newly acquired mineral rights cover 852 hectares (8.5 sq km) in the Jequitinhonha Valley region of Minas Gerais, known for its rich lithium deposits. This location is roughly 12 hours by car from BYD’s factory complex in Bahia, where the company plans to produce 150,000 electric vehicles annually.
BYD has hired local geological firm Minagem Geologia e Mineracao to conduct mineral research on the plots. Given Brazil’s regulatory framework, mining projects can take eight to 15 years to commence production if deemed economically viable, according to mining attorney Luiz Fernando Visconti.
With this strategic acquisition, BYD is doubling down on its commitment to Brazil’s growing lithium industry, further integrating itself into Latin America’s largest economy and expanding its global EV supply chain.
Source: https://www.reuters.com/markets/commodities/chinas-byd-holds-mining-rights-brazils-lithium-valley-documents-show-2025-02-14/
