The land totaling 852 hectares is located in Coronel Murta, a municipality in the Jequitinhonha Valley of Minas Gerais, known as Brazil’s “Lithium Valley.”
Will enable vertical integration
The location of these reserves makes this acquisition highly significant for BYD. The two plots of land are close to the company’s planned electric vehicle factory in Bahia state, Brazil.
For reference, Coronel Murta is around 512 miles away from BYD’s planned factory, which is expected to begin production soon.
Earlier, the company had asserted that the factory would be capable of manufacturing 150,000 electric vehicles annually.
This will enable BYD to access lithium reserves close to its production facility and establish a cost-effective supply chain for this critical battery component.
It is, however, not the first time that BYD has invested in lithium mining operations. The company has already undertaken such activities within China and participated in bids for Chilean lithium projects.