Brazil Allocates R5bn to Boost Critical Minerals Development

Bndes

Funding Expands Rare Earths, Lithium, and Graphite Projects

Brazil has awarded R5bn ($908mn) to support 56 critical mineral and research projects, signaling stronger investment in strategic resources. The funding, provided by the state development bank BNDES and federal agency Finep, will support mining and innovation initiatives tied to the energy transition.

Over 30% of the funds are directed toward rare earths and lithium, while graphite, copper, and silicon also feature prominently. The selection process included 53 companies, with major recipients such as Stellantis and Weg advancing energy and mobility-related projects.

High Demand Outpaces Available Financing

Brazil received requests for R45.8bn ($8.2bn), but only a fraction was financed. This underscores the strong demand for critical mineral project funding, with only R5bn allocated in the initial round. Applicants now must decide by 25 July whether to pursue loans, equity, grants, or subsidies.

Projects targeting platinum group metals, nickel, niobium, and titanium also received backing, highlighting Brazil’s broad resource base. The program prioritizes projects with research and development plans that support decarbonization and clean energy technologies.

Brazil’s Strategic Position in Global Supply Chains

Brazil holds leading reserves of niobium, graphite, nickel, rare earths, silicon, and lithium. This positions the country as a critical supplier in global energy transition supply chains. According to BNDES, Brazil is the world’s top niobium producer and ranks among the top five globally for several other strategic minerals.

The allocation of funds aims to accelerate local processing, innovation, and integration into global supply chains. As energy security and geopolitical pressures reshape markets, Brazil’s role in critical minerals is likely to grow in importance.

The Metalnomist Commentary

Brazil’s R5bn critical minerals funding demonstrates strategic prioritization of resources essential to the energy transition. While financing demand far exceeded available capital, the program highlights Brazil’s ambition to move beyond raw exports toward innovation-driven value chains. Long-term success will hinge on ensuring that projects deliver both economic returns and sustainability outcomes.