Canada and Brazil formally signed a technical cooperation agreement at the PDAC 2026 mining conference in Toronto, aiming to accelerate nickel deposit exploration using artificial intelligence. The agreement, signed by the Brazilian Geological Survey (SGB) and the Geological Survey of Canada (GSC), marks a deepening of cooperation between the two countries in the critical minerals sector to support battery manufacturing, electrification, and energy transition needs.

According to the agreement, the two sides will integrate geology, geochemistry, geophysics, and remote sensing data to study the formation and enrichment processes of nickel deposits and apply artificial intelligence for mineral potential modeling. This work will be conducted on a shared research platform, with the first discoveries expected to be announced in 2027. The goal is to reduce exploration risks and shorten discovery cycles through advanced technology.

Brazil possesses approximately 16 million tonnes of nickel reserves, ranking third globally after Indonesia and Australia, but its production accounts for only about 2.1% of the global total supply. This contrast has prompted Brazil to seek international cooperation to enhance its exploration capabilities, aiming to better utilize its resource base and reduce dependence on concentrated supply channels.

This cooperation comes at a time of increasing geopolitical tensions in the global critical mineral supply chain. Through technology sharing, Canada and Brazil aim to strengthen their positions in future nickel supply. Nickel is a critical metal for battery manufacturing and other industrial applications, and improving its exploration efficiency is of significant importance for the energy transition.

Despite facing price volatility and regulatory hurdles in the nickel market, such as the ongoing review of Anglo American's nickel asset sale in Brazil, international interest in Brazil's nickel resources continues to grow. The Canada-Brazil AI exploration alliance reflects the trend of the mining industry shifting towards data-driven and intelligent operations. If the 2027 results are significant, it may provide a new strategic reference for critical mineral exploration in the Americas.