Brazil's BNDES approves R$100 million for Piauí nickel processing project

The National Development Bank (BNDES) approved a financing package of R$100 million for Piauí Níquel Metais S/A, a wholly‑owned subsidiary of the British‑based Brazilian Nickel. The loan will be used to purchase machines, industrial equipment and services needed to process nickel and cobalt ores into mixed‑hydroxide precipitate (MHP), an intermediate product for lithium‑ion batteries, aerospace alloys and stainless steel.

The project is planned to produce up to 27,000 tonnes of nickel and 900 tonnes of cobalt per year, with pilot operations slated for 2028 and full‑scale production expected by 2029‑2030. Financing may cover domestically manufactured goods, while imported items are permissible when no local equivalent exists. The initiative is part of Brazil’s strategy to move beyond raw‑ore exports, adding value to critical minerals and diversifying supply chains for the United States, the European Union and other markets.

“Aloizio Mercadante, president of BNDES, said the investment aims to transform Brazil’s mineral potential into economic development by adding value, technology and stronger supply chains,” the release noted. Mark Travers, CEO of Brazilian Nickel, added, “The world needs to diversify its supply chains, and the Piauí Nickel project will position Brazil as a highly competitive and responsible global supplier.”