Brazil Emerges as Key Player in Global Critical Minerals Race Amid U.S. and EU Overtures

Geopolitical Shifts Drive Demand for Brazil's Mineral Wealth

Brazil has become a focal point in the global competition for critical minerals, with both the United States and the European Union actively seeking partnerships to secure access to its vast reserves. This heightened interest is a direct response to ongoing geopolitical dynamics, particularly the desire to reduce reliance on concentrated supply chains, predominantly those controlled by China. Critical minerals are indispensable for the energy transition, national security, and the development of advanced technologies, including electric vehicles and renewable energy systems.

Brazil's Rich Critical Mineral Landscape

Brazil possesses significant deposits of several critical minerals, positioning it as a crucial potential supplier. The country is among the top ten global producers of minerals such as nickel, manganese, niobium, iron ore, and bauxite. Notably, Brazil holds over 90% of the world's niobium reserves and the second-largest reserves of rare earth elements globally, estimated at around 21 million tons. Other key critical minerals found in substantial quantities include graphite (26% of global reserves), nickel (12%), and lithium (5%). The nation has also seen rapid growth in the production of lithium, natural graphite, rare earth elements, vanadium, and copper.

U.S. and EU Strategies for Engagement

Both the U.S. and the EU are pursuing distinct, yet complementary, strategies to engage with Brazil. The United States has held preliminary meetings with Brazilian officials, industry stakeholders, and financial institutions to explore a rare earths partnership. This initiative is part of a broader U.S. strategy to diversify its critical minerals supply chain and reduce dependence on China. A critical minerals agreement (CMA) with Brazil could make Brazilian exports compliant with the Inflation Reduction Act (IRA), potentially attracting direct U.S. investment into Brazilian projects. The U.S. International Development Finance Corporation (DFC) has already provided financing, such as up to $465 million to Serra Verde, Brazil's only active rare earth producer, to expand its Pela Ema mine.

The European Union, meanwhile, has expressed strong interest in formalizing a partnership with Brazil to guarantee access to strategic minerals. European Commission President Ursula von der Leyen highlighted the EU's intent to cooperate on 'joint investment projects in lithium, nickel, and rare earth elements,' emphasizing the need for strategic independence. The EU's strategy, anchored in the ReSourceEU initiative, aims to cut the bloc's dependence on critical mineral imports by up to 50% by 2029. European investors are prepared to deploy up to 3 billion euros by the end of this year, with Brazil being a central partner. The recently signed EU-Mercosur trade agreement is also expected to lower import tariffs on some critical minerals, further facilitating access.

Brazil's Vision: Beyond Extraction

Brazil's government, under President Luiz Inácio Lula da Silva, has made it clear that it aims to be more than just a raw material supplier. The country seeks to participate in the promising value chain, moving towards mineral processing and refining to capture more value domestically. The establishment of Brazil's National Mining Policy Council in October 2025 signals governmental recognition of the critical mineral sector's potential, aiming to streamline regulatory processes and attract international investment. Brazil is also developing long-term strategies for the rare earths chain, focusing on industrialization, knowledge, and strengthening sovereignty over these strategic resources.