BNDES approves R$100 million to support nickel processing in Piauí

The Brazilian Development Bank (BNDES) has approved R$100 million in financing for Piauí Níquel Metais S.A. to acquire machinery, equipment, or industrial services to support the production of high-purity nickel and cobalt precipitates in Capitão Gervásio Oliveira, Piauí, used in electric vehicles, sustainable energy, and aerospace, among other applications.

With funding from BNDES Machinery and Services, the company will be able to acquire domestically manufactured machinery, equipment, industrial systems, components, and IT and automation goods, as well as domestic services and imported equipment for which no domestic equivalent is available. The company's business plan was one of the projects selected under the Public Call for Investments in Strategic Minerals Transformation, launched by BNDES and Finep in 2025. The negotiations between the bank and the company were advised by Alvarez & Marsal Infrastructure.

A wholly owned subsidiary of Brazilian Nickel Limited, Piauí Níquel was established in Brazil to produce high-purity nickel and cobalt precipitates suited to high-value-added industries. The company's main product is Mixed Hydroxide Precipitate (MHP).

“Transforming Brazil’s mineral potential into economic development takes more than extracting resources: it requires adding value, incorporating technology, and strengthening production chains. Financing business plans for the transformation of critical minerals means investing in industrialization, innovation, and the country’s sovereignty in a market that is increasingly strategic for the energy transition,” explains BNDES president Aloizio Mercadante.

Brazilian Nickel CEO Mark Travers underscored the strategic impact of the investment for Brazil’s positioning in the critical minerals market. “The world needs, more than ever, to diversify its supply chains, and the Piauí Nickel Project will position the country as a highly competitive and responsible global supplier. This investment from BNDES validates a strategy that strengthens Brazil’s role in the global critical minerals supply chain,” Travers said.

Low-carbon technology – The project under development in Brazil is expected to have a production capacity of 27,000 tonnes of nickel and 900 tonnes of cobalt per year, with production starting in 2028. During the operational phase, expected in 2029, the ore will undergo a purification and direct precipitation process, causing nickel and cobalt to settle together as a wet solid known as MHP (with an average grade of 48% to 50% nickel and 2% cobalt), which will be sold in global markets.

The MHP to be sold is an intermediate product that can be used to produce nickel components for lithium-ion (Li-ion) batteries for electric vehicles, or as a raw material for traditional nickel applications, such as stainless steel and other alloys.

The heap leaching-based process stands out as a low-carbon technology for ore processing, ensuring better resource utilization and low environmental impact. This process is characterized by high water recirculation, low energy intensity, reduced emissions and solid waste generation, and eliminates the need for tailings dams.