Brazil critical minerals study outlines economic growth scenarios

A study conducted by researchers from the Federal University of Minas Gerais (UFMG) and the Federal University of Juiz de Fora (UFJF) outlines two potential development paths for Brazil’s critical minerals and rare earths supply chain.

The first scenario involves investments primarily funded by domestic capital, focusing on exports with low domestic value addition. This path is estimated to impact the Brazilian GDP by R$ 128.7 billion and create approximately 304,000 jobs.

The second scenario, which emphasizes foreign investment and expanded domestic mineral processing for national industry use, is projected to have a higher impact. This model suggests a GDP impact of R$ 192.1 billion and the generation of roughly 750,000 jobs. The study, commissioned by the American Chamber of Commerce in Brazil (Amcham), covers essential minerals for the energy transition, including copper, graphite, lithium, nickel, and rare earths.