Brazil eased restrictions on lithium exports in an effort to solidify its position as a worldwide supplier and capitalize on rising demand for the metal used in electric car batteries.
Adolfo Sachsida, Minister of Mines and Energy, told Reuters on Thursday that the legislation is anticipated to shift lithium investments from Eastern Europe and Asia to Brazil, describing his nation as a “safe haven.”
His comments to Reuters come a day after the government issued an executive order stating that lithium exports from Brazil would no longer need approval from the Science and Technology Ministry’s nuclear energy committee.
“That increases legal certainty and predictability [for companies] while reducing bureaucracy,” Sachsida said.
Brazil has a modest electric car sector and no facilities for processing the metal so that it may be utilized in batteries. Exports are seen as the greatest chance for the country’s fledgling lithium industry.
Lithium, a crucial basic ingredient for battery manufacture, is critical to the electric car sector. A lower amount is also utilized in nuclear reactors, which served as the foundation for Brazil’s earlier export regulations.
Local government-run geological service According to SGB, the judgment resolved concerns arising from regulations enacted in the 1970s, when the government started studying nuclear energy.
Sigma Lithium Corp (SGML.V) of Canada, which plans to begin manufacturing the metal in the South American country later this year, said the decision to repeal a “anachronistic regulation” will jumpstart Brazil’s aspirations to become a worldwide player in the industry.