Mercadante defends industrializing the rare earth chain: “we have to face the challenge of science and technology”

“We close the circuit and generate added value so that we are not just a commodity exporter of a new type of mineral. We have to seek to industrialize, we have to face the challenge of science and technology.” Mercadante cited the company VEG as an example, which presented a battery project produced in Brazil to BNDES.

In his speech, the president of BNDES also highlighted the strategic relevance of rare earths on the international scene, especially in sectors such as technology and defense. He mentioned dependency on certain components. “Brazil has the second rare earth reserves on the planet. China has around 45% (…) China is the one concentrating the production of sub-emissions, which is a vital element for all new technology linked to the electric engine and even defense”, he stated.

Mercadante also cited industrial policies adopted by the United States for the sector. According to him, there is strong North American public investment in the area. “The Trump government invested 1 billion and 700 million dollars in equity and 10 billion in subsidized credit for rare earths. If we want to manage this strategic reserve and be able to negotiate with the USA, the European Union, China, Korea, Japan, in short, for Brazil to have sovereignty and the ability to diversify its interests and partnerships, we have to have the investment capacity and boost this segment”, he said.

Mercadante also defended the need to strengthen research and technology as a central axis of Brazilian industrial development. “We have to seek to industrialize, we have to face the challenge of science and technology. That’s what has talent, that’s what generates research, that’s what generates added value. That’s why BNDES has an extraordinary role.”