Brazil's BNDES aims to build critical minerals value chain

Brazil's development bank (BNDES) director José Luis Gordon said the country intends to move beyond exporting raw critical minerals such as rare earths, lithium and cobalt and to develop a domestic value chain that can produce high‑value goods like batteries, electric‑vehicle components, wind‑turbine parts and semiconductors. To this end BNDES is partnering with mining giant Vale to create a private‑equity fund for junior mining companies and has launched a joint call with the financing agency Finep to support mineral processing projects. So far 56 projects have been qualified, representing around R$45‑50 billion in investment needs, and the bank is offering a suite of credit lines, including climate, innovation and export‑guarantee facilities. Petrobras is also being consulted for possible participation in the fund and in joint research on new processing technologies. The strategy is framed as a response to China’s dominance in rare‑earth processing and a way for Brazil to diversify its supply base while adhering to strict environmental and social standards.

The push reflects a broader revival of industrial policy worldwide, with international organisations noting the growing importance of critical‑minerals policy. By fostering domestic processing capacity, Brazil hopes to become a strategic supplier for the global energy transition and high‑tech sectors.