TELF AG takes a look inside Brazil’s lithium valley
The continent of lithium
The mineral potential of South America is certainly nothing new. The continent hosts some of the largest global reserves of some strategic minerals for the green transition, such as lithium. Nations such as Bolivia or Chile have already had the opportunity to highlight to the international community the abundance of their reserves, also attracting the interest of other international players interested in precious mineral resources. In recent years, however, another South American nation has begun to stand out for its liveliness in the mining sector: Brazil.
If South America is known for its “lithium triangle,” shared between Bolivia, Argentina, and Chile, Brazil, in the coming years, could establish itself on the global raw materials scene for its “lithium valley,” an area located in the state of Minas Gerais, in the Jequitinhonha valley. Many mining companies have already expressed their interest in the lithium found in this area due to its particular characteristics, which make it very attractive for current industrial needs.
As it is one of the essential components in producing batteries for electric vehicles, global demand for this resource is expected to increase in the coming decades. According to some estimates from the International Energy Agency, in 2040, global demand for lithium could increase by as much as 40 times compared to current levels. The global race for clean energy will increasingly require the use of strategic minerals necessary for their diffusion, just like lithium. This resource can be extracted in two ways: from brines, very common in the aforementioned “lithium triangle,” or from hard rock, which until now had been found mainly in China and Australia. Brazilian reserves in the “lithium valley” belong to the latter category.
The potential of the Jequitinhonha Valley
According to the Brazilian Ministry of Mines and Energy, most of the lithium reserves are in the Jequitinhonha valley, and others have recently been discovered in the northeastern area. Brazilian lithium reserves amount to approximately 730,000 tons, a much smaller amount than Bolivia’s (21 million tons), but the Brazilian lithium variety has some characteristics that are difficult to find in other reserves.
According to the Ministry, lithium from Minas Gerais is characterized by its high purity levels, making it particularly suitable for producing more powerful batteries. The Brazilian authorities are also working to develop a more efficient and sustainable extraction method through less water use. The Brazilian Lithium Company (CBL) has been producing lithium concentrate (spodumene) for more than 30 years, but recently, other companies have also expressed some interest in pure lithium from Brazil.
In April last year, one of the first companies to explore the potential of the lithium valley was Sigma, whose production could significantly increase during 2024. Other companies involved in the extraction and production of lithium in this specific area are Latin Resources, Lithium Ionic, and Atlas, which plans to produce up to 300,000 tonnes of spodumene concentrate per year.
