Brazilian Critical Minerals (ASX:BCM) has signed a five-year memorandum of understanding (MoU) with SENAI Regional Department of Minas Gerais, owner of the permanent magnet facility unit Lab Fab.
Lab Fab is currently developing the first permanent magnet manufacturing facility in Latin America and the two parties will cooperate in the technological development of rare earth magnet manufacturing processes.
The facility plans to begin operation later this year and the Federation of Industries of Minas Gerais plans to grow production to 200 tonnes of magnets per year.
Under the non-binding MoU, both companies will establish the bases for cooperation moving forward, with the intention to jointly research, develop, and innovate for the demonstrative production of rare earth magnets at Lab Fab in Lagoa Santa, Minas Gerais, by identifying activities of mutual interest.
Brazilian Critical Minerals, which has a market capitalisation of $10.79 million, says these activities include supplying raw materials, strengthening partnerships between participants and industries, joint research projects, and implementing joint activities.
These joint activities include initiating various other collaborative activities and programs, encompassing pilot and experimental initiatives in areas of mutual interest, as agreed upon by the involved parties.
Managing Director Andrew Reid says SENAI is a leader in developing technology within Brazil, and the company is excited to be partnering with them on studies and the pilot project to advance the rare earth permanent magnet production ambitions.
“This MoU reinforces the irreplaceable role that rare earth permanent magnets have in the application of high-performance machines around the world with the current supply forecast to double by 2040,” Reid says.
Lab Fab is a permanent magnet technology developer, focused on advancing the rare earths industrial chain in Brazil and producing a range of high-end technology products suited for a range of electric motor industries requiring rare earth magnets.
Brazilian Critical Minerals is a mineral explorer focused on exploring Brazil. The company owns the Ema and Apui projects, which covers more than 700km2.
Write to Aaliyah Rogan at Mining.com.au
Images: iStock
