Government defines priority critical minerals for investments

The National Council for the Industrialization of Critical and Strategic Minerals met this Thursday afternoon (5) to approve the federal government's list of priorities for critical and strategic minerals. There are 27 minerals listed, in groups of three priorities – high, medium and low –, to be considered in directing public policies and development resources.

The classification took five criteria into consideration: geopolitical risk involving the mineral; supply concentration; whether this mineral is replaceable or not; Brazil's position in the production chain (if it still needs further development, it moves up the list); and dependence that Brazil has on that mineral in relation to other countries.

The law that creates the National Critical and Strategic Minerals Policy was sanctioned on September 16, after approval by the National Congress. The text foresees investments of up to R$7 billion through incentives for mineral processing and transformation projects. And it is these investments that will be directed respecting the priorities defined in the list approved at today's meeting.

The objective is to create a new industry in the country to process these minerals and transform them into ready-made products, such as electric car batteries, and take Brazil out of the role of mere exporter of raw materials. The country has the second largest reserves of graphite in the world, the third of nickel, the fourth of manganese, and wants to increase investment in the sector.

The minerals at the top of the list are essential for electric vehicle batteries, permanent magnets and energy storage systems. As they are fundamental in a rapidly expanding market, nickel, graphite, lithium, among others, will receive priority in investments for development.

"For a long time we exported this wealth in its raw state and imported the finished product, with added value abroad. We want to break this cycle and define a strategy for development here", said the Minister of Development, Industry, Commerce and Services, Márcio Elias Rosa.

Present at the council meeting, President Luiz Inácio Lula da Silva highlighted the importance of developing a minerals industry in Brazil. To this end, Lula defended partnerships with other countries.

"We don't want to make the State the supreme master of exploration, transformation, industrialization. We want to build partnerships, we need to learn. We need to build with other countries that want to participate with us in the process of transformation and exploitation of this wealth."

List

The list approved by the National Council for the Industrialization of Critical and Strategic Minerals was created from others already existing in the Ministry of Mines and Energy (MME), the Ministry of Development, Industry, Commerce and Services (MDIC), the National Bank for Economic and Social Development (BNDES), among other bodies.

27 minerals were listed, in order of investment priority. But the list is not definitive and others may join, depending on the criteria already used to define the relationship approved today.

High priority

Rare Earths

Graphite

Lithium

Nickel

Cobalt

Copper

Manganese

Silicon

Uranium

Medium priority

Tungsten

Chrome

Vanadium

Tantalum

Titanium

Phosphate

Potassium

Sulfur

Low priority