Ann: Investor Presentation, page-40

Brazil exports first batch of "green lithium" to China

The mineral found in Minas Gerais state boasts high purity

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Published on 31/07/2023 - 09:03 By Andreia Verdélio - Agência Brasil - Brasília

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Brazil is set to export 130,000 tons of "green lithium" by year-end. The mineral is extracted in the Jequitinhonha Valley, located in the northeastern region of the state of Minas Gerais, and it has received a green seal due to its exploration plant's absence of a tailings dam.

Lithium is a crucial element for various industries, including the production of batteries, metal alloys, medical devices, and pharmaceuticals. The focus on long-lasting batteries for electric vehicles aligns with the global push for energy transition, making this export significant in the context of sustainable energy sources.

The initial shipment, comprising 15,000 tons of high-purity lithium and 15,000 tons of ultrafine tailings—produced by the Brazilian company Sigma Lithium—was sent to the Chinese company Yahua from the port of Vitória in Espírito Santo. Brazil’s Vice President and Minister of Development, Industry, Trade, and Services, Geraldo Alckmin, accompanied the dispatch. Notably, the production process of this "green lithium" does not require a tailings dam, and the water used in the purification step is recyclable as it does not involve chemical agents. The tailings are also dry stacked and utilized for the recovery of waste minerals, making it an environmentally friendly operation.

The operation is deemed strategically significant for the entire energy transition input chain, emphasizing sustainable sources and enhancing the added value of the product.

Lithium Valley

In May, the Ministry of Mines and Energy, along with the government of Minas Gerais, announced the launch of the Lithium Valley project in New York, seeking to attract international investment to the region.

Apart from Brazil's Sigma Lithium, several other foreign companies have begun establishing operations in northeastern Minas Gerais. This region encompasses ten municipalities that collectively form the Lithium Valley.

According to the ministry, these municipalities host Brazil's largest lithium reserve, consisting of approximately 45 deposits, as revealed by studies conducted by the Geological Survey of Brazil. The agency further indicates that each deposit holds a potential 20 times greater than the mineral reserves found in other regions, ensuring a long-term supply of raw material.

Brazil, along with Chile, Argentina, the United States, Canada, and Australia, is among the countries with the greatest potential for lithium extraction worldwide. However, Brazil's lithium stands out due to its competitive advantages that optimize investments. Unlike many other countries, the lithium found in Minas Gerais is of high purity, making it ideal for the manufacture of more powerful batteries, as explained by the Ministry of Mines and Energy.