Washington proposes tailored framework with price floor and financing as Brasília remains divided over openness
The Trump administration is awaiting a “clear political signal” from Brazil to move forward with a bilateral agreement on critical minerals, according to a spokesperson for the U.S. Embassy. The proposal is to establish a tailored cooperation framework between the two countries, including priorities such as setting a minimum price for these materials.
Critical minerals—used in advanced technologies in sectors such as defense and communications—have become a focal point of geopolitical competition.
The U.S. aims to build a partnership with Brazil capable of strengthening both countries’ industrial and technological bases. According to the spokesperson, Washington is interested in cooperating to expand processing capacity for these minerals.
More than 50 mining projects in Brazil have already been identified “that could contribute to international efforts to diversify and strengthen global supply chains for critical minerals,” the spokesperson said.
To enhance its position in the sector, the United States has outlined priorities, including discussions on a price floor, incentives for responsible investment in mining and processing that benefit both countries’ industrial bases, and streamlined licensing procedures. U.S. officials emphasize that the dialogue is intended to deliver mutual benefits.
Brazil holds the world’s second-largest reserves
Brazil’s rare earth reserves—estimated at 21 million tonnes—are emerging as a key element in global geopolitics. The country holds the world’s second-largest reserves but still lags in extracting these elements.
Given Brazil’s potential, the United States says the country could play a central role in developing global supply chains for critical minerals. “The U.S. International Development Finance Corporation (DFC) and the Export-Import Bank of the United States are offering more than $600 million in financing for ongoing critical minerals projects in Brazil, and we see potential for billions of dollars in additional investment,” the embassy spokesperson said, referring to U.S. government-backed institutions.
Seeking to deepen cooperation, the U.S. government will host an event this week to discuss opportunities for collaboration with Brazil in the sector. The Critical Minerals Forum will take place on March 18 in São Paulo and is expected to bring together more than 100 companies and representatives from state governments.
Brazil currently occupies a paradoxical position in the geopolitics of energy-transition minerals: it holds vast reserves but remains a minor producer, resulting in the underutilization of significant economic potential for income, industrialization, and technological development. This gap—typical of countries that fail to convert comparative advantage into competitive advantage—represents the main measurable economic opportunity for the coming decades.
As Valor reported, members of the Brazilian government say the critical minerals agenda remains stalled due to a lack of internal consensus on how open the country should be to foreign participation.
One faction within the Lula administration argues that imposing constraints on the sector at this stage would be counterproductive, given Brazil’s vast potential. These officials oppose agreements that could introduce restrictions on domestic production. This was also one of the main reasons Brazil declined to join a U.S.-led alliance on critical minerals and rare earths announced in early February.
Given the strategic importance of the issue, critical minerals are expected to feature on the agenda of a bilateral meeting between Lula and Trump, tentatively scheduled for March or April, though no date has been set.
Brazilian government sources argue that the country should engage with multiple partners rather than align exclusively with any single country or bloc. At the same time, they resist the idea that Brazil should remain merely a supplier of raw materials.
*By Sofia Aguiar — Brasília
Source: Valor International
https://valorinternational.globo.com/