The United States is awaiting policy clarity from the government of Luiz Inácio Lula da Silva, Brazil, to advance a bilateral agreement on critical minerals. The US Embassy has identified Brazil as a key “friend-shoring” partner to reduce dependence on China.

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The proposal spans more than 50 mining projects, with Brazil holding 21 million tonnes of rare earth reserves.

Financing support is provided by the US International Development Finance Corporation (DFC) and EXIM Bank, over USD 600 million in credit lines for strategic minerals.

Discussions between the two sides are centred on ensuring project viability and long-term value creation focus on pricing mechanisms to manage market volatility, incentives to expand domestic mineral processing in Brazil, and faster environmental and regulatory approvals while maintaining sustainability standards.

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São Paulo will host the Critical Minerals Forum on March 18 2026, the largest US-led industry event in Latin America, with participation from over 100 companies. 

Brazil is proceeding cautiously and keeping a diversified approach. The Ministry of Mines and Energy has said it is open to working with multiple countries without exclusivity. In February 2026, Brazil signed similar agreements with India and South Korea, while continuing ties with the European Union and China.

At the same time, it is trying to move beyond raw material exports and build capacity in areas such as batteries and semiconductors.

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