In brief
President Luiz Inacio Lula da Silva’s re‑election has derailed U.S. hopes of fast access to Brazil’s vast rare‑earth deposits. The new administration will tighten regulations, prioritize domestic processing and keep foreign investment but under stricter rules. The move pits Washington against China in a race for high‑tech raw materials.
Friday’s vote that secured President Luiz Inacio Lula da Silva’s second term in Brazil has derailed Donald Trump’s effort to secure quick access to the country’s vast rare‑earth reserves, according to Reuters.
The new administration will establish the National Council for the Industrialization of Critical and Strategic Minerals (CIMCE) to set tighter regulations on the sector, Reuters reported. Three council members told the outlet that the council will "prioritize processing rare earths within Brazil rather than exporting them as raw materials," while still welcoming foreign investment under stricter incentives.
"What’s most important is to produce more in Brazil. To process, manufacture, add value and invest in knowledge, research and development," said Marco Lage, a CIMCE member, as quoted in Reuters.
Reuters also noted that Lula has warned against a colonial‑style scramble for Brazil’s natural resources, a stance he said would keep the country from gaining little from foreign exploitation.
Former U.S. President Donald Trump had previously sought preferential access to Brazil’s mineral wealth, with a U.S. State Department official confirming Trump’s intent earlier in the year. Trump also tried to pressure Brazil with tariffs and sanctions in a prior attempt to secure cooperation on rare‑earth exploitation.
