BYD Co. Ltd. has obtained mining rights for two land parcels in Brazil’s lithium-rich Jequitinhonha Valley, marking the company’s entry into the mining sector in its largest market outside of China. The acquisition, completed in 2023, was executed by BYD’s newly established subsidiary, Exploracao Mineral do Brasil, according to public records.
The acquired land spans 852 hectares (8.5 square kilometers) in Coronel Murta, a region recognized as Brazil’s Lithium Valley. This location is approximately a half-day’s drive from BYD’s newly announced factory project in northeastern Brazil, where the company committed to investments in 2023. The new factory complex includes three manufacturing plants: one for electric bus and truck chassis, another for new energy passenger vehicles, and a processing facility dedicated to lithium iron phosphate (LFP) battery materials. Construction of this industrial complex began in March 2024 on the site of the former Ford Brazil plant.
However, initiating lithium production in Brazil is expected to be a long-term endeavor. Luiz Fernando Visconti, an attorney specializing in mining at Visconti Law, stated that it typically takes between eight to fifteen years to commence production in Brazil, provided the mining project is economically viable.
In addition to securing mining rights, BYD is in discussions with Sigma Lithium, a Brazilian lithium producer, to establish a supply agreement for lithium, a critical component for power batteries. The potential collaboration may involve a supply agreement, joint venture, or acquisition to ensure a steady supply of lithium for BYD’s battery production needs.
Lithium prices have experienced considerable volatility, reaching as high as RMB 590,000 ($81,060) per ton in November 2022 before decreasing to below RMB 80,000 per ton in China. Despite these fluctuations, BYD remains committed to expanding its lithium resources to support its growing battery and electric vehicle production.
Looking ahead, BYD’s chief scientist has indicated that solid-state batteries are expected to become widely adopted within the next five years, signaling the company’s focus on advancing battery technology to enhance the performance and safety of electric vehicles.
Source: CnevPost
