Brazil Potash Project to Begin $2.5 Billion Autazes Mine Construction in 2026

Brazil Potash Project — Brazil’s aggressive cropland expansion in recent years has earned it the title of the world’s top soybean producer. However, this growth has created a new challenge: where to source essential crop inputs such as potassium fertilizer, as global trade uncertainty and geopolitical tensions continue to disrupt supply chains.

Brazil Potash Eyes Domestic Solution

According to Matt Simpson, CEO of Brazil Potash Corp., the solution lies beneath Brazilian soil. The Canadian-based company aims to become Brazil’s leading domestic potash producer by the start of the next decade.

Brazil Potash plans to begin construction soon on its $2.5 billion Autazes Project, located in the Amazon’s potash basin in northwest Brazil. The project will feature two potash ore mine shafts, a processing plant, and a river port to distribute fertilizer to growers nationwide. Construction is scheduled to start in early 2026 and finish by late 2030.

Diversifying Global Potash Supply

Currently, global potash production is concentrated in Canada, Russia, and Belarus. Once operational, the Autazes Project could diversify global supply and reduce dependence on these traditional producers. The move could also benefit U.S. farmers by easing global supply pressure while fueling Brazil’s continued cropland expansion and cementing its position as a top grain exporter.

Corporate Overview and Financial Performance

Headquartered in Toronto, Brazil Potash trades on the New York Stock Exchange under the ticker “GRO.” In November, the company raised $30 million through an initial public offering of 2 million common shares. Despite this, it remains in its early growth phase, reporting an operating loss of $46.6 million in 2024. The company’s share price currently trades below $2, down sharply from $15 during the IPO.

Rising Trade Frictions Add Pressure

Brazil’s fertilizer ambitions come amid rising global trade tensions. Earlier this year, U.S. President Donald Trump increased tariffs on some Brazilian goods from 10% to 50%, escalating economic friction between the two nations.

While Canada supplies up to 90% of U.S. potash imports, these tariffs have raised concerns among U.S. farmers facing already tight margins due to low crop prices and high input costs.

Challenges for Brazil’s Fertilizer Sector

Brazil’s logistics sector faces its own hurdles. The country has a history of strikes by truck drivers and port workers, which periodically disrupt agricultural exports. In October 2024, nearly 60,000 port workers held a 12-hour strike to protest a bill threatening to dissolve certain unions, according to local reports.

Global Potash Landscape

According to Natural Resources Canada, Canada leads global potash production with a 32% market share, followed by Russia (18%) and Belarus (16.6%).
The U.S., by contrast, produces only 400,000–500,000 metric tons annually—less than 1% of global output—while consuming over 5 million metric tons each year.

Brazil consumes about 13.8 million metric tons (MMT) of potash annually, importing nearly all of it. With demand growing at around 7% per year, the Autazes Project could mark a turning point in Brazil’s long-term fertilizer independence.

Key Takeaway

The Brazil Potash Project has the potential to transform the country’s fertilizer landscape, reduce import dependency, and enhance food security. If successful, it will not only strengthen Brazil’s position in global agriculture but also reshape international potash trade dynamics.

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