Since its launch in 2022, Brazil’s “Lithium Valley” has already attracted more than US $1.18 billion in announced investments, drawing major players into the Jequitinhonha region of Minas Gerais. At the center of this surge is Spark Energy Minerals, which controls nearly 92,000 hectares — the largest contiguous landholding in the Valley — with a dual focus on rare earth elements (REEs) and lithium, two commodities critical to the clean energy transition.

This article draws on insights from Spark’s August 2025 presentation to examine the company’s strategy, assets, and potential role in shaping Brazil’s critical minerals landscape.

Link to Spark’s Q3 Corporate Presentation: https://drive.google.com/file/d/1CekntQhTZ0nouPiWYWsGQlHQc7HwGDwx/view?usp=sharing

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A Strategic Landholding in Lithium Valley

Spark controls ~91,900ha in Lithium Valley, including a ~64,000-ha contiguous block — the largest contiguous position in the district. This positions Spark adjacent to some of the region’s most significant emerging discoveries — including Axel REE’s ionic adsorption clay (IAC)–style, clay-hosted rare earth system, described by the company as hosting high-grade REE mineralisation — as well as BYD, which is understood to hold exploration claims in Brazil’s Jequitinhonha Valley through a local subsidiary.

The company’s footprint is significant: its landholding not only dwarfs most peers but also sits along known mineralized structures. This provides Spark with direct exposure to the same geological systems underpinning billion-dollar valuations at Sigma Lithium and Lithium Ionic.

The image below highlights Spark Energy Minerals’ dominant landholding in Brazil’s Lithium Valley, showcasing its rare earth, gallium, and lithium discovery potential.
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*Spark commands the largest land package in Brazil’s Lithium Valley. Unmatched exposure to rare earths, gallium, and lithium discovery potential.*

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Rare Earths & Gallium Potential

Spark’s most immediate focus lies on the Caladão Trend, where its concessions directly border Axel REE’s discovery. Early exploration has revealed highly encouraging signs:

Soil samples report up to 94.07 ppm Ga₂O₃ at Caladão; stream sediments peak at 6,417 ppm TREO.

These results align with the unique potential of Brazil’s ionic adsorption clay (IAC) deposits — one of the few systems outside China known for high recovery rates and low-cost extraction. For gallium in particular, Spark’s assays suggest strategic importance, given gallium’s role in semiconductors and its restricted supply chains.

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Lithium Upside at Cruzeta

While rare earths may capture headlines, Spark is also advancing a strong lithium portfolio. At its Cruzeta Project, mapping and sampling have confirmed pegmatites consistent with spodumene-hosted systems, with assays up to 3,712 ppm Li. Four lithium drill targets have been identified, located within the same structural corridor as Sigma and Lithium Ionic’s world-class deposits.

This positions Spark to benefit directly from growing demand for cost-efficient lithium production. Brazil’s lithium projects, already producing at nearly 50% lower costs than Australia, are rapidly gaining attention from automakers and battery manufacturers seeking diversified, ESG-compliant supply.

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Infrastructure and Policy Advantage

Spark’s projects sit in Minas Gerais, one of Brazil’s most mining-friendly states. The region boasts extensive infrastructure, including highways, rail connections, ports, and abundant renewable hydropower. Since Brazil lifted its lithium export restrictions in 2022, the sector has attracted a wave of foreign investment, with state and federal governments actively promoting critical minerals development.

This policy and infrastructure foundation gives Spark a platform to advance projects with fewer logistical and regulatory barriers compared to many other frontier jurisdictions.

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Roadmap and Work Program

Spark is advancing its Phase 1 exploration program with a focus on progressing priority targets toward drilling while continuing complementary phases of exploration. Current and planned activities include:

Soil geochemical surveys and auger drilling (already underway).
Diamond drilling planned for Q3–Q4 2025.
Trenching and detailed target definition across priority REE and lithium zones.

These efforts are designed to leverage Spark’s dominant land position across the emerging eastern extension of Brazil’s Lithium Valley, with the goal of generating near-term catalysts and positioning the company to confirm discovery-scale systems by late 2025.

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Experienced Team with Discovery Track Record

Spark’s leadership is another differentiator. The board and advisors include:

Fernando Tallarico – CEO and Chairman of the Board – Dr. Tallarico is a highly respected exploration geologist and mining executive with over 35 years of global experience. He holds a PhD in Economic Geology and has played a leading role in major discoveries for Axel REE, Vale S.A., BHP, and Águia Resources, where he advanced the Tres Estradas Phosphate Project from grassroots discovery to mine construction permitting. A Fellow of the Society of Economic Geologists, he brings proven expertise across the full mineral exploration lifecycle, from early-stage discovery through development and project execution.
Jonathan Hill – Director & VP Exploration – Mr. Hill is an accomplished exploration geologist with 40 years of global experience, including more than 25 years dedicated to Latin America. He has held senior leadership roles at AngloGold Ashanti and Jaguar Mining, where he contributed to multiple world-class greenfield and brownfield discoveries. Hill’s expertise spans the full exploration-to-development cycle, and he has a particularly strong track record in Brazil’s greenstone belts, where his work has been central to advancing some of the country’s most significant gold projects.
Andrew Smith – Chair, Technical Advisory Board - An experienced technical leader specializing in lithium and rare earth projects. Smith has worked extensively on resource development strategies and brings technical depth to Spark’s exploration and evaluation programs.
Leonardo Souza – Exploration Manager - A Brazilian exploration geologist with hands-on expertise in lithium and rare earth projects, Souza leads Spark’s on-the-ground technical programs in Minas Gerais. His local knowledge and operational experience ensure efficient execution of fieldwork.
Ian Gendall – Advisor - A geologist with decades of international exploration success, including at Anglo American and other majors. Gendall has been directly involved in significant discoveries in South America and supports Spark’s strategy with global technical insight.

This combination of local knowledge and global discovery success strengthens Spark’s ability to deliver results in Brazil’s complex but highly prospective geology.

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What Does This Mean for the Industry?

Spark Energy Minerals exemplifies the new wave of junior explorers driving Brazil’s critical minerals revolution. Its dual focus on rare earths and lithium not only diversifies risk but also positions the company at the nexus of two supply chains essential to clean energy technologies.

For the industry, Spark’s story highlights three broader shifts:

Brazil’s rise as a global hub for both REE and lithium, underpinned by supportive policy and infrastructure.
The growing strategic value of juniors controlling large land packages in proven districts.
The race for diversification — as global industries seek to reduce reliance on China, early-stage projects like Spark’s gain disproportionate strategic importance.

If Spark delivers on its exploration roadmap, it could evolve from an $5M market-cap junior into a meaningful player — or even an acquisition target — in Brazil’s critical minerals sector. For investors, OEMs, and policymakers, Spark Energy Minerals is one to watch closely as Brazil cements its role in the global energy transition.

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For corrections, updates, or to share additional insights on this topic, please contact:
Alberto Cruz
Marketing Director, IN-VR
E: alberto@in-vr.co

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