Chinese electric vehicle manufacturer BYD has expanded its operations in Brazil.
The company acquired 852 hectares of lithium-rich land in Coronel Murta, Minas Gerais.The purchase, made through its subsidiary Explorao Mineral do Brasil, positions BYD in the heart of Brazils Jequitinhonha Valley.
This region, often called Lithium Valley, holds over 80% of the countrys lithium reserves.This move highlights BYDs strategic effort to secure critical raw materials for its EV batteries as global demand for lithium intensifies.
The Lithium Valley offers a significant opportunity for lithium extraction.Brazil is emerging as a key player in the global market.
Regulatory reforms in 2022 eased restrictions on lithium exports, attracting foreign investment.This positions Brazil to increase its share of global lithium production from 2% to 25% by 2030.
BYDs acquisition aligns with these developments and complements its new factory in Bahia, where it plans to produce up to 150,000 EVs annually.BYD Secures Lithium Rights in Brazil to Bolster EV Supply Chain.
(Photo Internet reproduction)BYDs Strategic Expansion into Brazils Lithium MarketBrazils lithium deposits are primarily found in hard rock pegmatites.
This type of deposit allows for simpler and more cost-effective extraction.
It is more efficient than brine-based methods, which are commonly used in countries like Chile.Production costs in Brazil range between $400 and $500 per metric ton.
This makes it an attractive option for companies like BYD.
However, mining projects often take years to reach full production, and BYD has yet to announce specific plans for its new holdings.This acquisition also fits into BYDs broader global strategy.
The company has pursued similar ventures in Chile and is reportedly negotiating with Sigma Lithium, Brazils largest producer, for potential partnerships.As demand for lithium surges due to the energy transition and EV adoption, BYD is making a strategic move into Lithium Valley.
This move underscores its commitment to securing resources that are critical for its supply chain.
It also reinforces BYDs presence in a growing market outside China.