Lithium: understand why this element is increasingly relevant in the mining industry - Core Case

Lithium: understand why this element is increasingly relevant in the mining industry

Lithium was discovered in 1818 and is a light metal, commonly found in magma rocks, not occurring freely in nature, as it is a very rare ore. It is worth mentioning that an important Brazilian personality, José Bonifácio de Silva Andrada, discovered 2 lithium minerals, describing, and naming the spodumene and petalite.

According to S&P Global, the demand for lithium should reach 2 million tons by 2030 and in this scenario, Brazil could be one of the main producing countries as it concentrates most of the world’s lithium reserves in Latin America.

Source: CPRM 
(https://www.cetem.gov.br/antigo/images/eventos/2016/ii_litio_brasil/apresentacoes/2-avaliacao_do_potencial_geologico_de_litio_br.pdf)

This element has even been called the ” 21st century’s white gold” due to the energy matrix transition  that the world is going through, it can be used in several renewable energy sources, which should be adopted by most countries in the years to come, being its main use in batteries for electric vehicles. To learn more about lithium, read this content to the end!

Mining in Brazil

In 2008, only 3 countries had 85% of all the lithium ever found until that year in the world, the demand for this ore has started to increase a lot in the last years, due to the energy transition that will happen for cleaner energy sources. In 2020, according to the USGS, Brazil was the fifth largest lithium producer, reaching 1900 tons, Chile reached 18,000 tons, being second and Australia was first reaching 40,000 tons.

Some research suggests that the demand for lithium will increase up to six times by 2050. According to the general director of the SGB-CPRM, today Brazil’s representation in the world production of lithium is only 1.5%, and may reach 5% in about 10 years, even with this increasing global production.

Although this representation is low, there are data from the United States Geological Survey (USGS) published in 2021 that place the country as the seventh in the world to have a greater amount of lithium in its territory. Today it is estimated that 95,000 tons could be exploited with current technologies and laws, in the total available reserves, counting what is currently inaccessible, is estimated at 470,000 tons.

Currently, only two companies produce lithium in Brazil, Companhia Brasileira de Lítio (CBL) and AMG Brasil, and there are a number of companies with projects in progress. Among them is Sigma Lithium, which should start selling ore by the end of 2022 and has invested R$ 2.3 billion in its ventures in the country.

The Jequitinhonha Valley, in Minas Gerais, concentrates most of the known reserves in Brazil, and the extraction of this ore is carried out in small and medium sized quarries. It is important to note that, increasingly, there is an effort by the Ministry of Mines and Energy to map other regions with potential for lithium production and exploration.

New studies for lithium in Brazil

The SGB-CPRM did a first survey in the Jequitinhonha Valley, northeastern Minas Gerais, where the state’s main lithium mining companies are located, the second phase of the project is being completed and is studying occurrences in the states of Rio Grande do Norte and Paraíba, and a third phase should be started to verify occurrences in the state of Ceará.

The purpose of these campaigns is to understand more about the Borborema Pegmatite Province, located between the states of Rio Grande do Norte and Paraíba, and to learn more about the areas already mined, in addition to discovering new deposits.

It is worth mentioning that the time between discovering the lithium in a place and starting production can take up to ten years, because there are some challenges, among them, adding value to the ore that Brazil has not yet mastered, and this is one of the areas where investment will be made.


It grabbed attention from several industries, especially the automotive industry, which is interested in mining lithium because it is crucial to use it in electric vehicles, since, lithium is required to manufacture a battery for this type of vehicles.

Lithium and clean energy

Currently 70% of the world’s lithium is already used for the production of batteries, and a leap in the Brazilian production is expected by 2025, as this demand are increasing, and even more electric vehicles are expected to be running in the country. Tesla, a world leading company in this industry, revealed that almost half of the vehicles it produced in the first half of this year were equipped with iron-lithium phosphate batteries.

Source: https://carroeletrico.com.br/blog/bateria-litio/

In addition to batteries for electric vehicles, it is also used for solar energy, wind power, and nuclear energy reactors. The U.S. Department of Energy considers lithium as one of the 16 key strategic raw materials for energy transition.

Decree allowing the trade of Lithium in Brazil

On July 06, 2022, the  Decree no. 11.120 was published in the Brazilian Official Gazette (DOU), promoting the opening and implementation of the Brazilian lithium market. This decree allows foreign trade operations of lithium minerals and ores and their derivatives and has the objective of positioning Brazil as one of the main countries for lithium mining.

Source: Metais BR (https://www.metaisbr.com/wp-content/uploads/Produto-Litium.jpg)

Due to this flexibility, they expect more than 7,000 direct jobs in lithium mining to be created, reaching a total of 84,000 direct and indirect jobs in its production chain. Therefore, lithium will be increasingly strategic not only for the country, and throughout the world in years to come.


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References:

https://forbes.com.br/forbes-money/2022/07/brasil-pode-se-tornar-uma-potencia-na-producao-de-litio-diz-sigma/

https://www.tecmundo.com.br/ciencia/231948-brasil-precisa-ciencia-explorar-litio-agredir-ambiente.htm

https://www.in.gov.br/en/web/dou/-/decreto-n-11.120-de-5-de-julho-de-2022-413346932

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