US Considers $550 Million Loan for Nickel and Cobalt Project in Brazil

The US government is evaluating a proposal to provide a loan of up to $550 million to support the development of the Piauí Nickel project in Brazil’s Northeast. This initiative, led by Brazilian Nickel, aims to secure critical minerals for the energy transition and reduce dependency on China’s dominant supply chains for key metals.

Brazilian Nickel has received a letter of interest from the US International Development Finance Corporation (DFC) indicating its potential backing for the project. The company expects to convert this letter into a committed financing facility by early 2025. The proposed loan represents approximately 40% of the project’s overall financing package. “Piauí represents an opportunity to advance critical mineral development in Brazil, diversify critical supply chains, and foster economic growth in the region,” said Danielle Montgomery, acting vice president of infrastructure and critical minerals at DFC.

The Piauí Nickel project is set to produce 27,000 metric tons of nickel and 900 metric tons of cobalt annually over its first decade of operation. Mark Travers, CEO of Brazilian Nickel and former head of base metals at Vale, expressed optimism about the project’s progress, targeting full financing by 2025 and initial production by 2028.

Brazilian Nickel is part of TechMet’s portfolio, a battery metals company in which the DFC holds an equity stake. TechMet focuses on assets that produce, process, and recycle critical minerals essential to the electric vehicle industry and broader energy transition efforts.