Top mining industry official says supply of critical minerals set to keep steady while usage in U.S. likely to shift to defense sector
02/17/2025
Critical and strategic minerals mined in Brazil are among the key inputs for achieving energy transition goals. Brazilian natural resources like copper, lithium, graphite, nickel, and rare-earth elements are poised for increased production through enhanced geological knowledge, mineral surveying, and new mining concessions, according to Brazil’s Ministry of Mines and Energy (MME).
Some of these critical and strategic minerals are sold to the U.S., and with Donald Trump’s return to the country’s leadership, the market raised concerns about potential reductions in these imports or additional tariffs. However, Raul Jungmann, president of the Brazilian Mining Institute (Ibram), asserts that Brazil will continue exporting critical and strategic minerals to the U.S. The difference is how they will be used.
Mr. Jungmann notes that out of the 51 strategic minerals consumed by the US, at least 15 can be exported by Brazil. “There is a global rush for minerals, especially strategic ones. Regarding Mr. Trump, the early indications are that there is still interest, but now the reason behind this interest is shifting.”
During Mr. Trump’s previous administration, the critical and strategic minerals purchased by the US were aimed at applications related to energy transition. Now, according to Mr. Jungmann, these products will be directed toward the defense sector. For instance, lithium from Minas Gerais is a vital component of rechargeable batteries, while nickel from Goiás, Bahia, and Piauí is used in stainless steel production. According to consolidated data from the MME, Brazil ranked as the world’s fifth-largest lithium producer in 2022, following Australia, Chile, China, and Argentina. For nickel, Brazil was the ninth-largest producer that year.
A Citibank report indicates that Brazil is well-positioned to attract investments and scale the production of critical minerals. “This could bring economic benefits to Brazil and Latin American countries through mineral supply, job creation, and infrastructure development.”
“Brazil possesses approximately 20% of the global reserves of graphite, nickel, manganese, and rare earth elements. However, production does not match the reserves, accounting for just 0.2% and 7% of the global production of rare earth elements and graphite, respectively. Only 7% of the global exploration budget for nickel and rare-earth elements is allocated to the Latin American region,” according to the bank.
*By Kariny Leal — Rio de Janeiro
Source: Valor International