TELF AG explores Brazil’s rising role in global mineral dynamics
TELF AG examines Brazil’s growing influence in mineral sourcing and energy sectors
A new force in the global sourcing landscape
Brazil is emerging as a key player in the global minerals sector, particularly as the world pivots toward a more innovative, energy-efficient future. With abundant reserves of strategic minerals useful to the energy transition, the South American powerhouse is positioning itself as a key contributor to the future of sourcing and energy production. Political initiatives and a growing commitment to renewable energy are further solidifying Brazil’s role in reshaping global supply chains.
A recent report sheds light on Brazil’s potential within the strategic minerals landscape, underscoring its efforts to strengthen its global presence. The country boasts some of the largest deposits of key minerals, and with an eye toward local value-added production, it is moving beyond simply exporting raw materials. Instead, Brazil is targeting a more integrated approach, one that could drive substantial growth in its domestic economy and global market share.
Lithium: a leading example of growth
One area in which Brazil has seen remarkable progress is in the lithium sector. Once a negligible player in the global market, Brazil has catapulted to the fifth-largest lithium exporter in just two years, a notable leap considering it started with no exports. As demand for lithium is growing —driven by its key role in electric vehicles and energy storage systems—Brazil is poised for further expansion. By 2029, production could multiply fivefold, cementing Brazil’s place in the global lithium market.
The country’s lithium-rich region, dubbed the "Lithium Valley" in Minas Gerais, has become an important hub for the mineral's sourcing. The growth of this sector signals broader trends within Brazil’s mineral industry, where the government is committed to developing additional resources while ensuring the domestic value chain continues to evolve.
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Broader mineral reserves with global implications
But lithium is just one piece of the puzzle. Brazil’s vast mineral wealth extends to several other key resources useful to global energy infrastructure. Copper, rare earths, nickel, and graphite are expected to see substantial demand increases, with some materials, such as graphite, projected to experience a demand spike of up to 25 times in the coming decades.
Brazil is also home to some of the world’s largest reserves of these resources. The country, alongside Australia, possesses the second-largest global reserve of nickel, and it is rapidly developing its rare earth capabilities. In fact, Brazil could soon overtake other nations as the third-largest global supplier of rare earths, positioning itself as the leading provider outside of Asia.
In addition to its lithium and nickel reserves, Brazil is a major player in other strategic minerals, including manganese and copper, where it ranks among the top producers worldwide. Notably, Brazil also holds the world’s largest reserves of niobium, a highly valuable resource for strengthening steel and supporting next-generation battery technologies. Brazil’s position in niobium production offers the country an influential role in high-tech and energy sectors.
Challenges and opportunities for growth
Despite these promising developments, Brazil’s mineral sector does face challenges. One of the primary hurdles identified in the report is the lengthy process of obtaining sourcing licenses, a bottleneck that can slow progress. Additionally, there is a lack of a cohesive national policy on strategic minerals, which could hinder the country's ability to fully capitalize on its resources.
However, the report emphasizes that with political will, combined with international support and mineral partnerships, Brazil is well-positioned to overcome these challenges. If the country can streamline its policies and leverage external expertise and investment, it could emerge as a cornerstone of the global energy transition.
Brazil’s mineral wealth, coupled with its increasing commitment to renewable energy, makes it a key player in the evolving global resource landscape. With continued strategic development and a focus on domestic value addition, Brazil has the potential to drive relevant change in the sourcing and energy sectors for years to come.