Brazilian Financial Institutions Fund 50 Critical Mineral Projects

According to a report on the BNAmericas website, a fund established by the Brazilian Development Bank (BNDES) and the National Financial Institution (Finep) has already screened 50 projects related to the critical minerals supply chain, with a total of 5 billion reais ($900 million) in funding available.

The fund aims to increase investment to promote the development, innovation, and downstream processing of critical minerals, including lithium, graphite, copper, nickel, rare earths, and other materials crucial for clean and renewable technologies, thereby driving a transformation in the domestic mining industry.

In a statement, BNDES said that the funds could be accessed through financial instruments such as credit, subsidies, and non-reimbursable support.

The bank estimates that financing these selected projects is expected to bring in 45.8 billion reais in investment. These projects include 10 rare earth projects, 8 lithium projects, 6 graphite projects, 4 copper projects, and 4 silicon projects.

Valdir Farias, CEO of mining consulting firm Fioito, said, "This initiative by BNDES and Finep is extremely important for the Brazilian mining industry, as it not only finances projects and initiatives in their early stages but also opens up opportunities for more investors to get involved in the mining sector, in addition to unlocking investments related to critical minerals."

He added, "BNDES plays a significant role in Brazil's financing market and will actively encourage other market participants to provide additional funding for early-stage projects. In Brazil, many financial institutions lack understanding of the real risks and high-return potential of these projects, which often face difficulties in securing financing."

The screening of these projects and initiatives was part of a public call held earlier this year, during which BNDES and Finep received a total of 124 applications from companies and consortia seeking funding to develop technological and industrial solutions to meet the growing demand for critical minerals.

Each selected company and group is now allowed to submit only one business plan, with a minimum funding of 20 million reais.

José Luis Gordon, Director of Development, Innovation, and Foreign Trade at BNDES, said, "We are advancing strategic investments that combine innovation, sustainable development, and the creation of high-quality jobs."

"The selection of these project proposals reflects President Lula's commitment to creating development opportunities for the country and the Brazilian people. We are paving the way for sustainable growth, developing national industries, and achieving global leadership in the energy transition," he added.

According to data from the Brazilian Mining Institute (Ibram), from 2025 to 2029, rare earth projects in Brazil are expected to attract $2.17 billion in investment, representing a 49% increase compared to the expected growth from 2024 to 2028.

Projects funded by BNDES-Finep include those of Canada's Aclara Resources, Australia's Meteoric Resources, and Viridis Mining & Minerals, as well as Mineração Serra Verde, which is controlled by global investment firm Denham Capital.