Brazil’s vast but underdeveloped rare earth resources have become a focal point in renewed talks with the US, as both governments explore ways to bolster ex-China supply chains. The country holds the world\u2019s second-largest reserves of rare earth elements, according to the US Geological Survey (USGS), yet produces only a fraction of global supply and has limited processing capacity.<\/p>\n
Currently, China controls about 60 percent of global rare earth mining and more than 90 percent of processing, a dominance that has come into sharper focus after Beijing imposed export restrictions in response to Trump\u2019s trade tariffs. This has led the US to accelerate efforts to secure alternative sources, striking critical mineral agreements with countries including Australia and the Democratic Republic of Congo. As a result, Washington has been quietly sounding out Bras\u00edlia on a potential rare earths partnership following a tentative diplomatic thaw between President Donald Trump and Brazilian President Luiz In\u00e1cio Lula da Silva.<\/p>\n
\u201cThere\u2019s nothing but opportunity here,\u201d one official familiar with the discussions told the Financial Times. \u201cBrazil\u2019s government is open to a deal on critical minerals.\u201d Talks remain at an early stage, but engagement has intensified over the past year. Gabriel Escobar, the US charg\u00e9 d\u2019affaires in Brazil, has discussed rare earths with Brazil\u2019s mining association Ibram and companies active in the sector, according to people with knowledge of the meetings. Despite the country\u2019s abundance of the resource, Brazil\u2019s rare earth ambitions are constrained by familiar hurdles, including financing, regulatory delays, and a lack of geological mapping.<\/p>\n
Momentum has also been reinforced by growing competition for Brazil\u2019s attention. In Rio de Janeiro last week, European Commission President Ursula von der Leyen said the EU was in talks with Brazil on a critical raw materials agreement covering lithium, nickel, and rare earths, framing the issue as central to strategic autonomy. Commercial interest is already building around this policy shift, with Australian-listed developer Viridis Mining and Minerals (ASX:VMM) in talks with potential rare earth buyers in the US and Europe for material from its proposed Colossus project in Minas Gerais.<\/p>\n
Political risk consultants see conditions aligning for a future agreement. Christopher Garman of Eurasia Group said he expects progress soon. \u201cWe\u2019ve got like a 75 percent odds of some kind of a deal occurring by Q1,\u201d he said. Brazilian policymakers see rare earths as both an economic opportunity and a diplomatic lever, and the country has been seeking to rebalance relations with Washington after tensions flared last year over US trade tariffs and sanctions linked to the prosecution of former president Jair Bolsonaro. For more information, read the full article Here<\/a>.<\/p>\n When researching investment opportunities in the rare earth sector, consider the geopolitical implications and supply chain risks associated with reliance on a single country or region, and diversify your information sources to stay informed about the latest developments in this rapidly evolving field.<\/p>\n","protected":false},"excerpt":{"rendered":" Introduction to Brazil’s Rare Earth Resources Brazil’s vast but underdeveloped rare earth resources have become a focal point in renewed talks with the US, as both governments explore ways to bolster ex-China supply chains. The country holds the world\u2019s second-largest reserves of rare earth elements, according to the US Geological Survey (USGS), yet produces only […]<\/p>\n","protected":false},"author":1,"featured_media":2204,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/investingnews.com\/media-library\/brazilian-flag-waving-against-a-clear-blue-sky.jpg?id=62846112&width=1200&height=600&coordinates=0%2C167%2C0%2C167","fifu_image_alt":"","footnotes":""},"categories":[17],"tags":[],"class_list":{"0":"post-2203","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing-news"},"_links":{"self":[{"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/posts\/2203","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/comments?post=2203"}],"version-history":[{"count":1,"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/posts\/2203\/revisions"}],"predecessor-version":[{"id":2205,"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/posts\/2203\/revisions\/2205"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/media\/2204"}],"wp:attachment":[{"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/media?parent=2203"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/categories?post=2203"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/tags?post=2203"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Smart Tip for Readers<\/h2>\n