The logo of China’s manufacturing enterprise group byd.
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Chinese electric vehicle manufacturer Bit In 2023, the mineral rights were obtained for two pieces of land in Brazil’s lithium-rich land, according to public records reviewed by Reuters.
EV manufacturers’ acquisition of mineral rights in Brazil is by far the most specific step towards strategic minerals in the western hemisphere.
Documents show that previously unreported mineral rights were conducted by BYD subsidiary Exploracao Mineral Do Brasil, which was created in May of that year.
The plots are just half a day away from BYD’s new factory project in northeastern Brazil, and it also agreed to invest in 2023. Atlas Lithium.
Public registration documents show that the subsidiary’s equity is $4 million ($695,000) and has shifted approximately 213,000 reas from exchange rate changes in 2023.
A report from the October shareholders’ meeting seen by Reuters said the company was “in the research phase with neither financial movement nor operating revenue.”
Byd declined to comment on the matter.
Byd, who bought shares among major Chinese miners, was one of six companies that allowed bids for the Chilean lithium project last year and outlined plans for a lithium cathode plant in northern Chile.
Recent visits from delegations from the United States, Saudi Arabia and China highlighted global interest in Brazil as an open market in the geopolitical competition for strategic minerals.
Unlike South American neighbors, Brazil has avoided its severe presence in its lithium sector and even alleviated export controls on metals in 2022.
Its best prospect for lithium is hard rock sediments, which can be leveraged by traditional mining, which is different from the tricky lithium extraction of salt flats in Argentina, Bolivia and Chile.
Bidd’s exploration of Brazilian lithium has strengthened its bet on Latin America’s largest economy, which has suffered major investments in the former Ford factory complex, which has accused of labor abuse at work sites.
Last year, the Financial Times reported that Byd and Sigma LithiumBrazil’s largest lithium producer, is a joint venture or acquisition under possible supply agreements.
Lithium Valley
BYD’s mineral rights cover 852 hectares (8.5 square kilometers) of the town of Coronel Murta, part of the Jeqeitinhonha valley in the state of Minas Gerais, known as the Lithium Valley in Brazil.
The company said on its website in June that the adjacent atlas lithium project of Coronel Murta is in the research phase after the initial geological mapping in the region.
Atlas CEO Marc Fogassa said he learned of Baid’s existence through a third party, but never discussed it directly with the automaker.
“If they invest in both areas, it’s because they see potential, which obviously makes my area more valuable,” Fogasa told Reuters.
Coronel Murta is about 825 km (512 miles) and is about 12 hours’ drive from the complex along the Bahia coast, Byd is developing a factory that can produce 150,000 electric vehicles a year.
Public documents show Byd hired Minagem Geologia E Mineracao, a local mineral research firm.
Minagem said it must seek permission from its BYD subsidiary to talk about the matter.
In a mining project in Brazil, Brazil’s mining projects usually require Production begins between eight and fifteen years.
