BYD may have a new power play in EV lithium mining, documents reveal

The world’s largest EV maker does not look to be slowing down anytime soon. Newly discovered documents show that BYD may have a new power play in the works regarding mining rights in “Brazil’s lithium valley.” The move could be its biggest outside of China as it expands into the West.

BYD is expanding its mining business for EVs

BYD is best known for its electric cars, such as the Seagull, Dolphin, and Atto 3, but the company does much more than just build affordable EVs.

Its early beginnings as a battery maker back in the 90s helped propel BYD to become the electric vehicle powerhouse it is today. In 1998, it became the second-largest rechargeable battery maker, and in 2003, it entered the auto business.

BYD stopped making gas-powered cars to focus on electric and plug-in hybrid (PHEV) vehicles and it has paid off big time.

In 2023, the EV juggernaut topped Volkswagen to become China’s largest car maker, and this past October, it surpassed SAIC as the country’s largest auto group. SAIC has joint ventures with GM and Volkswagen in China.

It looks like BYD may have another big move coming. According to documents viewed by Reuters, BYD has mining rights in Brazil at two sites.

BYD’s subsidiary, Exploracao Mineral do Brasil, acquired the mineral rights in late 2023. The business was established the same year and is still in “the research phase, with neither financial movement nor operating revenue,” a separate report in October stated.

Although BYD has a stake in several Chinese mining companies, the move would mark its first in Brazil, its largest market outside China.

It would also be a strategic move toward mining critical electric vehicle minerals in the western hemisphere, including lithium.

Last year, a Financial Times report claimed BYD held talks with Brazil’s largest lithium producer, Sigma Lithium. BYD’s head of operations in Brazil, Alexandre Baldy, said there were “active” talks and “Different strands are being discussed about supply, a joint venture, an acquisition… nothing is concrete.”

BYD’s mining rights in Brazil cover 8.5 sq km (852 hectares) in Coronel Murta, part of “Bazil’s Lithium Valley.” The site is about 500 miles (825 km) from BYD’s new EV manufacturing plant, set to open later this year with an annual production capacity of 150,000 vehicles.

The mining project likely won’t be operational for some time. Attorney Luiz Fernando Visconti of Visconti Law, a law firm that specializes in mining, said it could take eight to 15 years for an EV mining site to open in Brazil.