In Brazil’s Lithium Valley, Lightning Minerals Ltd (ASX:L1M) has inked a Memorandum of Understanding (MoU) with state government entity Invest Minas to fast-track the development of Lightning’s projects in the fertile Minas Gerais region.
The three-year, non-binding MoU supports both parties’ shared goal of establishing the region as a major player in the global energy transition, positioning it as a hub for lithium and battery materials to meet the increasing demand in the global green energy market.
Secretary of State for Economic Development Fernando Passalio said: “The Lithium Valley project was created to promote not only local economic development but also to improve the living conditions of the population, especially in areas such as Vale do Jequitinhonha, through the generation of jobs and income.
“This partnership with Lightning Minerals is also fundamental to position Minas Gerais as a reference in technology, sustainability and the global energy transition.”
Collaborative initiative
Invest Minas is a collaborative initiative between the Minas Gerais State Economic Development Department and the Minas Gerais Integrated Development Institute.
The partnership has the full support of the state government to progress licensing and environmental approvals, streamlining the exploration and development process.
Under the MoU, Invest Minas will assist Lightning Minerals with regulatory approvals and connect it with local suppliers for its Caraíbas, Sidrônio and Esperança lithium projects.
The agreement aligns with the government’s Lithium Valley initiative, which focuses on stimulating economic growth in the region by supporting a sustainable battery materials supply chain.
Enhancing supply chain
This alliance will also explore investment partnerships to enhance the lithium supply chain in Minas Gerais, with Lightning Minerals committing to use local services, employ regional talent and introduce lithium expertise in Brazil.
Lightning Minerals has been actively advancing exploration in the region, including soil sampling and geophysical surveys as part of its Phase 1 exploration program.
Lightning Minerals managing director Alex Biggs said: “The signing of this MoU with Invest Minas is a great indication of the supportive nature of the Minas Gerais government to Lightning’s exploration activities in the Lithium Valley region.
“As a company, we fully endorse Brazil and Minas Gerais as a tier-1 jurisdiction to conduct business, not only from the supportive nature of the government but also from a prospectivity perspective.
“We have been aggressive in beginning our work programs across our three project areas and are committed to developing a strong relationship with the government and local communities.
Globally prolific lithium district
“We are a firm believer in the lithium thematic moving forwards and to be located in what we see as one of the most prolific lithium districts globally we see significant upside for the company and its shareholders.
“We look forward to developing our relationship with Invest Minas and joint cooperation to assist in building a strong, sustainable lithium industry in Minas Gerais.”