BYD Secures Lithium Mining Rights in Brazil’s ‘Lithium Valley’

Chinese automaker BYD has acquired mining rights to over 852 hectares of land in Brazil’s Jequitinhonha Valley, an area known as the country’s ‘Lithium Valley.’ The land, near Coronel Murta in the eastern state of Minas Gerais, is rich in hard-rock lithium, which is suitable for traditional mining methods.

Although BYD has secured the rights, lithium production is not expected in the short term due to the lengthy process of developing a mining operation. The acquisition was handled by BYD subsidiary Exploracao Mineral do Brasil, established in May 2023. The company has yet to comment on its specific plans.

BYD is not alone in the region. U.S.-listed Atlas Lithium is also in the research phase for lithium extraction in neighboring areas. Both companies are currently mapping geological features before advancing to production.

Brazil is a key market for BYD, where it is investing in multiple production facilities. The company is developing three factories at a former Ford site in Bahia, including an electric and hybrid car plant, an electric bus and truck chassis factory, and a lithium and iron phosphate processing plant for global exports. Additionally, BYD operates electric bus chassis production in São Paulo and a lithium iron phosphate battery assembly plant in Manaus.

BYD’s new car plant is expected to have an initial production capacity of 150,000 electric and hybrid vehicles per year, with the potential to double output to 300,000 units.