Brazil is stepping up its bid to become a global powerhouse in critical and strategic minerals, unveiling plans to offer financial guarantees for new mining projects and tax incentives for local processing and industrialization. The announcement followed the first meeting of Brazil’s National Mining Policy Council on Thursday — a key milestone in reshaping the nation’s mining strategy.
The new initiative aligns with President Luiz Inácio Lula da Silva’s vision of treating strategic minerals as a matter of national sovereignty. By encouraging domestic value addition, Brazil aims to curb raw mineral exports and strengthen its role in the energy transition supply chain. “This framework will help Brazil retain control over its mineral wealth and position the country as a global leader in the energy transition,” Lula told Reuters earlier this year.
A Strategic Shift Amid Global Tensions
The council approved a working group tasked with developing public policies to build out Brazil’s supply chain for critical minerals — a sector increasingly at the center of geopolitical competition. The move comes as China tightens export controls on rare earth elements, which are vital to renewable energy, electric vehicles, and advanced electronics.
With the world’s second-largest reserves of rare earths after China, Brazil produces less than 1% of global output, according to the U.S. Geological Survey. The government now sees an opportunity to close that gap. “China’s tightening of export controls naturally opens up a great opportunity for Brazil,” said Mines and Energy Minister Alexandre Silveira, adding that it also creates “a window of opportunity for synergies with the U.S.”
Diplomatic Momentum Builds
The policy push coincides with a warming in U.S.–Brazil relations after years of tension. Under the previous U.S. administration, Washington imposed 50% tariffs on Brazilian goods, citing political turmoil linked to former President Jair Bolsonaro’s failed coup attempt in 2022.
Since then, President Lula has sought to rebuild trade dialogue, particularly around critical minerals and clean energy technologies. Recent talks between Brazilian Foreign Minister Mauro Vieira and U.S. Secretary of State Marco Rubio were described as “positive” by both sides.
Minister Silveira is expected to meet U.S. Energy Secretary Chris Wright at this month’s G7 Energy and Environment Ministers’ Meeting in Canada, where discussions will focus on critical minerals cooperation and data center development — sectors Brazil sees as key to its industrial future.
Positioning for the Energy Transition
Brazil’s renewed mining policy underscores a broader strategy: to transform its vast geological wealth into a foundation for sustainable industrial growth. By backing miners with financing support and offering tax relief for value-added processing, the government hopes to attract investment, create jobs, and solidify Brazil’s place in the global clean energy economy.
