US Mulls Backing Brazilian Nickel Plant With Up to $550M
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The U.S. government is considering whether to provide a loan of up to $550 million to help developing a nickel and cobalt mine in Brazil’s Northeast.
Brazilian Nickel Ltd. has received a letter from the U.S. International Development Finance Corp. expressing its interest in backing the Piauí Nickel Project. The company expects to convert the letter of interest into a committed financing facility in early 2025. The amount represents almost 40% of the project’s overall financing package, it said in a statement.
The move comes as the U.S. rushes to secure critical minerals to reduce dependence on China, which dominates the supply chain for many key metals, including those needed for the energy transition. Piauí “represents an opportunity to advance critical mineral development in Brazil, diversify critical supply chains, and foster economic growth in the region,” Danielle Montgomery, acting vice president of infrastructure and critical minerals at DFC, said in a statement.
The project is set to produce 27,000 metric tons of nickel and 900 metric tons of cobalt a year across the first 10 years of operation. In September, Brazilian Nickel’s CEO Mark Travers, a former head of base metals at mining giant Vale SA, said he was “very optimistic” about having a fully financed project in 2025 with first production targeted for 2028.
Brazilian Nickel is part of the portfolio of battery metals firm TechMet Ltd., which counts DFC as one of its shareholders. The company invests in assets that produce, process and recycle critical minerals that are key to the electric vehicle industry and the energy transition.
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