Vale (NYSE: VALE) is studying the possibility of expanding its mining operations into lithium and rare earth minerals, according to CEO Gustavo Pimenta.

Speaking at a event in Brasília, the executive stated that the company is evaluating opportunities outside the segments where it already has established operations. However, any potential entry would depend on factors such as scale, competitiveness and the ability to develop an operation that makes strategic sense within Vale’s portfolio.

Regarding rare earths, Pimenta highlighted some of the challenges associated with entering the sector, particularly because supply chains operate on a very different scale from Vale’s traditional businesses, with dimensions significantly smaller than those of the company’s established operations in areas such as iron ore and copper.

“[Rare earth minerals] are still a very small market compared with iron ore and copper. It is a niche market, but geopolitically important,” Pimenta said.

According to the executive, the company’s interest in these minerals is primarily linked to their geopolitical importance and expectations of increasing demand driven by the electrification and digitalization of the economy.

Vale is one of the world’s largest mining companies and is the largest producer of iron ore worldwide. The company also has operations in nickel, cobalt and copper, as well as smaller operations in platinum group metals (PGMs).

Iron ore remains Vale’s main source of revenue and EBITDA, with approximately 70% of revenue coming from these operations. Meanwhile, other businesses such as copper and nickel account for approximately 30%, but have recorded rapid growth and increased profitability in recent years.

For example, when calculating the first two quarters of 2026 against 2025 EBITDA in this segment, growth reached 95%, compared with only 2% growth in iron ore over the same period.

Against this backdrop, the company is considering to diversify its operations while seeking complementary sources of revenue that can be integrated into its existing portfolio.

Pimenta reiterated that Vale is evaluating opportunities outside the commodities where it already has established operations, but that any potential expansion would need to meet specific criteria.

“There are some commodities where we are quite mature. The company is always looking at other opportunities to see whether there is another commodity that makes sense. It obviously needs to meet some criteria, but this is our business,” Pimenta said during the mining event in Brasília.

Potash, Rare Earths, and Gold: Mapping the Amazon’s Critical Mineral Opportunity

At the same event, BNDES President Aloizio Mercadante said the development bank intends to discuss with Vale a greater role for the company in lithium, copper and rare earths. Mercadante also advocated for the inclusion of Petrobras in discussions on developing a domestic battery and battery-cell supply chain.

The approach comes amid efforts by the government and private sector to increase Brazil’s participation in higher-value stages of the mineral supply chain, moving beyond the extraction and export of mineral concentrates.

USA Rare Earth Acquires Western Hemisphere’s Largest Rare Earth Mine in $2.8 Billion Brazil Deal