In February 2023, Chinese electric carmaker BYD secured mineral rights for two lithium-rich plots of land in Brazil, its largest overseas market, according to Reuters. This move represents the company's significant progress in mining strategic minerals in the Western Hemisphere.
The acquisition of mineral rights in Brazil was facilitated by BYD's subsidiary, Exploracao Mineral do Brasil, established in May 2023. The plots are strategically located near BYD's existing project in northeast Brazil and alongside properties owned by Atlas Lithium.
The subsidiary, capitalized at 4 million reais ($695,000), generated a profit of approximately 213,000 reais in 2023. A shareholders' meeting report revealed that the company is currently in the research phase without financial activities.
BYD refrained from commenting on the acquisition. The company, well-versed in the mining sector due to its investments in Chinese mines, expressed interest in establishing a lithium cathode plant in Chile.
Concerning the geopolitical competition for strategic minerals, Brazil's open market has attracted attention from international delegations. Unlike neighboring countries, Brazil's lithium sector operates without heavy state intervention.
BYD's venture into Brazilian lithium further underscores its commitment to Latin America’s largest economy. Recent interactions between BYD and Sigma Lithium, Brazil's leading lithium producer, suggest potential collaboration or acquisition discussions.
Covering 852 hectares (8.5 sq km) in Coronel Murta, Minas Gerais, known as Brazil's Lithium Valley, BYD's mineral rights showcase its significant investment in the region. Nearby, Atlas Lithium's exploration activities in Coronel Murta aim to leverage the area's lithium potential.
BYD has enlisted local mineral research firm Minagem Geologia e Mineracao following the acquisition to enhance its mining operations. Mining projects in Brazil typically require several years before production commences, based on economic viability assessments by legal experts such as Luiz Fernando Visconti of Visconti Law.
The driving force behind BYD's forward-thinking approach and investment in Brazil underscores its dedication to establishing a strong presence in the region's burgeoning electric vehicle market.