China's $4.18 Billion Investment Surge in Brazil's Sectors

In 2024, Chinese companies substantially increased their investments in Brazil, allocating $4.18 billion across 39 distinct projects. This marks a substantial increase of 113% in investment value and 34% in the number of projects compared to the previous year.The electricity sector was the primary destination for these investments, attracting 34% of the total. Chinese firms allocated $1.43 billion to wind and solar energy projects. Following closely, the oil industry received about $1 billion, accounting for 25% of the investment. This simultaneous focus on both renewable and fossil fuels may seem contradictory, but as Tulio Cariello, a CEBC research director, explains, both sectors are expanding at the same time as China's energy transition still depends on fossil fuels. 

Chinese companies are also heavily investing in the mining sector, particularly in critical minerals. According to a CEBC report, this strategy is aimed at better integrating supply chains for clean energy projects. Since 2007, Chinese investments in Brazil's mining industry have totaled $77.5 billion across 303 projects. A key example is the late 2024 acquisition of Mineração Taboca, Brazil's top refined tin producer, by China Nonferrous Metals Mining Corporation (CNMC) for $340 million. Tin is crucial for clean energy technology, and Taboca also produces niobium and tantalum, which are used in electronics, aerospace, and green energy applications.

China's renewed interest in Brazil highlights Beijing's focus on key industries within South America's largest economy, driven by the search for essential raw materials. This trend is further supported by the current strategic alignment between the two nations under President Luiz Inácio Lula da Silva. Both countries are major players in renewable energy, though they also continue to rely on fossil fuels. Brazil's electricity is currently 90% renewable, thanks to its extensive hydropower capacity and growing wind and solar sectors. However, the country is simultaneously boosting oil production in the run-up to the UN Climate Change Conference (COP30).

Despite hosting the conference in November 2025, Brazil's designated president of COP30, André Corrêa do Lago, stated that the country's "Net Zero" goal would still allow for oil production for several years. This is underscored by Brazil's state-owned energy company, Petrobras, which is actively seeking permits to drill in the environmentally sensitive offshore Amazon basin. Petrobras believes this area, known as the Equatorial Fringe, holds significant oil potential, particularly given major recent discoveries in nearby Guyana, French Guiana, and Suriname.