Brazilian Nickel has secured a major boost for its Piauí nickel project in Brazil, receiving a Letter of Interest (LOI) for a $550 million loan from the US International Development Finance Corporation (DFC). This funding, representing 40% of the project’s total financing package, is a crucial step in advancing the Piauí nickel laterite heap-leach project, which is poised to become a key player in the global nickel market.

The Piauí project, located in the northeast Brazil, boasts a mineral reserve of 99 million tonnes, with the grades of 0.84% nickel and 0.05% cobalt. It began a small-scale production in the year 2022, with plans for full-scale operations that are projected to produce 27,000 tonnes of nickel and 900 tonnes of cobalt annually during the first 10 years. The project is vital in meeting the rising demand for the nickel, especially for the use in electric vehicle (EV) batteries and renewable energy technologies.

TechMet, a battery metals investment firm that holds a 70% stake in Brazilian Nickel, played a key role in securing the DFC’s interest in the project. The DFC, which is also a shareholder in TechMet, has been active in providing alternative financing options to counterbalance China’s dominance in the critical minerals market. Currently, China processes about 65% of the world’s nickel and 82% of its cobalt, giving it a significant control over the global supply chain.

Brian Menell, CEO of TechMet, emphasized that Brazil has the potential to become one of the world’s top nickel producers outside of Indonesia. He noted that the Piauí project will play one of the most essential role in creating a clean and a well-governed supply chains to balance China and Indonesia’s market control. This aligns with the growing global demand for secure, sustainable sources of critical minerals.

Danielle Montgomery, the acting vice president of infrastructure and critical minerals at DFC, highlighted the importance of the Piauí project in advancing mineral development in Brazil and diversifying global supply chains. She noted that the project will foster economic growth in the region while supporting the transition to clean energy.

Brazilian Nickel expects to convert the LOI into a formal financing facility by early 2025, paving the way for the full-scale development of the Piauí project. This significant financing move underscores the growing strategic importance of Latin America in the global race for critical minerals needed to power the green energy revolution in coming times.