Zema’s bet to revive one of the poorest regions

One of the poorest regions of the country, the Jequitinhonha Valleylocated in the northeast of Minas Gerais, has been seen as a place of great economic potential, thanks to a gem hidden in its relief: the lithium. Mineral exploration has been taking place for some decades, but the increase in demand for lithium carbonate has made the whole world turn its eyes to the region, which is on the border with the state of Bahia.

Used in the manufacture of batteries, especially for cell phones and notebooks, the metal has been increasingly demanded due to the growing production of electric vehicles. A Teslathe largest manufacturer of this segment in the world, predicts that its demand for lithium carbonate by 2030 will be 16 times greater than the need it had in 2022. This represents 30% more than current world production.

The Jequitinhonha Valley is home to approximately 1 million inhabitants, corresponding to 5% of the population of Minas Gerais. However, the Gross Domestic Product (GDP) of the region, according to the latest data from the IBGE, corresponded, at the end of the last decade, to around 1.5% of the Minas Gerais GDP. Until the arrival of large mining companies, the region’s economy was based mainly on family farming and handicrafts.

In May of this year, the government of Minas Gerais launched the Vale do Litio project in New York, with a focus on attracting global companies to the north and northeast regions of Minas Gerais. Data released by the Minas Gerais Investment Promotion Agency (Invest Minas) confirm investments of R$ 5 billion, and the expectation is that this number will reach between R$ 20 billion and R$ 30 billion by 2030. until 2022, it classified lithium as a national security product and imposed several bureaucracies for its exploration, which facilitated the arrival of new people interested in investing, exploring and processing lithium.

So far, 14 municipalities are on the lithium route: Araçuaí, Capelinha, Coronel Murta, Itaobim, Itinga, Malacacheta, Medina, Minas Novas, Pedra Azul, Virgen da Lapa, Teófilo Otoni, Turmalina, Rubelita and Salinas.

In addition to investments in production, the government seeks to make the infrastructure viable, since the flow of production would be hampered due to the critical situation of the region’s highways and airports. To give you an idea, the largest airport in Minas, located in Confins, in the metropolitan region of Belo Horizonte, is 470 kilometers from Teófilo Otoni, a city that is among the largest in the region, with 137,000 inhabitants and a regional airport. According to information provided by the advisory of the Government of Minas, in addition to Teófilo Otoni, Araçuaí and Salinas must have their airports improved to meet the demands that will arise from lithium.

The expansion of energy distribution and transmission systems is also included in the list of improvements for the region. In July of this year, Cemig (Companhia Energética de Minas Gerais) inaugurated the Itinga Substation, built especially to meet the needs of one of the mining companies already installed at the site.

Investments in human capital are also planned to work in the lithium production chain, in addition to financing business to support the industry that are in growing demand, such as hotels, restaurants, machinery and equipment rental companies and service providers in general.

According to the vice-president of the Minas Gerais Development Bank (BDMG), Antônio Claret, the bank sees a great opportunity for support in this initial period of operations in the Lithium Valley. “BDMG supports the development of all regions of Minas. We know that financing is important to boost employment and income, and this is even more relevant for this region. Private investors from all over the world are eyeing the lithium processing project, which will expand the development potential of several other activities, such as hotels, restaurants and workshops”, he says.

Since Governor Romeu Zema’s (Novo) first term, concern has been demonstrated in promoting social and economic development through job creation. The Lithium Valley initiative reinforces this intention. The concern with the economic and social precariousness of the region mobilizes an interdisciplinary work of the government, seeking to consolidate public policies that can improve the quality of life of the population.

According to the Secretary of Economic Development, Fernando Passalio, this is a long-term job, but one that aims at this integrated development. “There is a focus on training professionals to meet the demands of the region through the Trilhas de Futuro program, of the State Department of Education, which offers free technical training for high school graduates. For the Lithium Valley region, most qualified jobs will be requested. For this reason, the program is planning an edition of the project for the region, with the expectation of graduating the first group of professionals in 2024”, says Passalio.

The qualification of professionals is an urgent need, since only with the initial investments, the expectation is that more than 3 thousand jobs.

Vale do Litio plans battery manufacturing plant

Despite the growth in demand for lithium due to batteries, both lithium carbonate and lithium hydroxide have industrial applications ranging from the production of greases, ceramics and special glasses to applications in the pharmaceutical industry and nuclear power generation. Within the Vale do Litio project, the plans of the State Government include the viability of a plant for the manufacture of batteries.

The focus on bringing about development is not dissociated from environmental concern. Secretary Passalio says that the companies that are authorized to operate in the region follow international socio-environmental governance protocols and have agreed counterparts. “They act with commitment in various social counterparts necessary to improve the quality of life of the population. We can mention, for example, the credit program for women entrepreneurs in the region, as well as the construction and maintenance of hospitals, schools, among others.”

There are five companies operating in the region, both in extraction and research. The first shipment of lithium from the Jequitinhonha Valley was exported in July this year, leaving the Port of Vitória, in Espírito Santo. At the time, 15 thousand tons were shipped to China.