Brazil is providing $815m (5.01bn reais) in financing to support strategic mineral projects, aiming to enhance its supply chains for critical minerals.

Led by BNDES, the Brazilian Development Bank, and government funding agency Finep, the initiative seeks to position Brazil as a key supplier of raw materials while developing value-added metal products, as reported by Bloomberg.

The parties allocated 5bn reais in financial support for companies, which includes both credit lines and equity investments.

The financing will be utilised to develop supply chains for minerals including lithium, rare earth elements (REEs), nickel, graphite and silicon. It could potentially generate investments ranging between 25bn and 50bn reais for the country.

Additionally, it will support investments in manufacturing batteries, photovoltaic cells, and magnets used in electric vehicles and wind turbines, the report stated.

This move aligns with Western nations’ efforts to reduce reliance on China, a dominant supplier of critical metals.

Brazil’s significant mineral reserves offer an opportunity for it to become a major player in the global supply chain for strategic minerals.

BNDES president Aloizio Mercadante emphasised the importance of partnerships between domestic and foreign entities.

“The call is an important step forward in the mineral sector for achieving the Brazilian Government’s goals of expanding the industry’s production capacity in the context of sustainable and technological development of the new industrial policy and the ecological transformation plan,” Mercadante said.

In a similar development, St George Mining announced new partnerships in December last year to advance downstream production of niobium and REEs from the Araxá Project in Minas Gerais, Brazil.

As part of its strategy to expand its influence in Brazil’s critical metals supply chain, St George is focusing on the processing of niobium and REEs.

The company signed a memorandum of understanding (MOU) for a five-year partnership with SENAI and FIEMG.

Under the terms of the MOU, the companies will cooperate to produce rare earth magnets at Lab Fab in Lagoa Santa, Minas Gerais.