BYD Secures Lithium Mineral Rights in Brazil Amid Global Expansion
Chinese electric vehicle manufacturer BYD has acquired mineral rights for two plots of land in a lithium-rich region of Brazil, marking its entry into the mining sector in its largest market outside China. The acquisition, finalized in late 2023 through BYD subsidiary Exploracao Mineral do Brasil, represents the company's most significant move yet in securing strategic minerals in the Western Hemisphere.
The newly acquired plots are located in Jequitinhonha Valley, Minas Gerais, an area known as Brazil’s "Lithium Valley." They are situated near BYD’s planned factory in northeast Brazil and adjacent to land owned by U.S.-listed miner Atlas Lithium. Public records show that BYD’s subsidiary was created in May 2023 with an initial share capital of 4 million reais ($695,000) and recorded a small profit from exchange rate variations.
While the subsidiary remains in the research phase and has yet to commence operations, the move aligns with BYD’s broader strategy of securing lithium resources. The company has previously invested in major Chinese mining firms and was among six companies permitted to bid on a Chilean lithium project in 2023. It has also proposed a lithium cathode plant in northern Chile.
Brazil has positioned itself as a competitive player in the lithium market, easing export controls on the metal in 2022, unlike its South American neighbors. Its lithium reserves, primarily found in hard rock deposits, are considered easier to extract than the salt flat resources in Argentina, Bolivia, and Chile.
BYD’s involvement in Brazilian lithium further emphasizes its commitment to Latin America, though the company has faced recent challenges, including accusations of labor abuses at a factory investment site. In 2023, the Financial Times reported BYD’s discussions with Sigma Lithium, Brazil’s leading lithium producer, about potential partnerships or acquisitions.
Atlas Lithium’s CEO Marc Fogassa noted that he was informed of BYD’s presence in the region through a third party but has not engaged in direct discussions with the company.
