Atlas Lithium’s Neves project selected for potential funding under US-Japan critical minerals partnership

Atlas Lithium said its Neves project in Brazil was selected for potential funding under the US-Japan critical minerals partnership, highlighting its strategic role in lithium supply.

Atlas Lithium said its flagship Neves lithium project in Brazil has been selected for potential funding consideration under the recently signed US-Japan critical minerals cooperation agreement, marking a significant step for the company as it advances toward production.

According to the company, the Neves project was included in a joint fact sheet submitted by the two governments as part of a list of projects being considered for possible financial support. Atlas Lithium said Neves is the only Brazil-based lithium asset named in the document, highlighting its strategic relevance within efforts to strengthen supply chains for critical minerals.

The announcement follows the US-Japan Critical Minerals Investment Ministerial held in Tokyo last month, attended by several US agencies, as well as the summit between Japanese Prime Minister Sanae Takaichi and US President Donald Trump.

The market reacted positively to the update. Shares of Atlas Lithium rose nearly 4% after the announcement, giving the company a market capitalization of about $123.6 million.

Neves project gains strategic relevance in lithium supply chain

Atlas Lithium said the joint fact sheet identifies projects that could help reinforce the global supply chain for critical minerals, with Neves among the assets seen as potentially contributing to that objective.

The company also pointed to its existing relationship with Mitsui & Co., which became a strategic partner in 2024 through a $30 million investment and an offtake agreement tied to future production from the Neves project. Later that same year, Atlas secured its operating permit in Brazil, allowing it to move the project closer to development.

Now in the pre-production stage, the Neves project is designed to process ore from the Neves deposit through a dense media separation plant to produce lithium concentrates. Once in operation, the project is expected to deliver 300,000 tonnes per year.

Feasibility study highlights strong economic potential

According to the company’s definitive feasibility study completed last year, the Neves project has the potential to generate an after-tax internal rate of return of 145% and a net present value of $539 million, with an estimated payback period of just 11 months.

Atlas Lithium chief executive Marc Fogassa said the project’s inclusion in the joint US-Japan fact sheet represents strong recognition of both the strategic value of the company’s assets and the progress achieved by its team.

The development comes at a time when governments and companies are intensifying efforts to diversify lithium supply outside traditional sources, as demand for battery materials continues to rise alongside electric vehicles, energy storage and broader electrification trends.

For Atlas Lithium, the potential backing under the US-Japan partnership could further strengthen the positioning of Neves as one of Brazil’s emerging lithium projects, while also reinforcing the country’s role in the evolving global critical minerals landscape.