The United States is actively pursuing a rare earths partnership with Brazil, aiming to lessen its reliance on China for minerals vital to clean energy, advanced manufacturing, and defense. According to sources and a Financial Times report, officials from both nations, alongside industry and financial institutions, have held preliminary talks to diversify supply chains.
China currently dominates the global mining and processing of these elements, which are essential for electric vehicles, wind turbines, and military hardware, giving it significant strategic leverage.
Brazil, home to the world’s second-largest rare earth reserves, represents a key diversification target. While its sector has historically been hampered by bureaucracy and underinvestment, the landscape is shifting. The government has established a National Mining Policy Council to revitalize the industry and accelerate approvals. On the ground, activity is growing. Serra Verde, Brazil’s sole producer, secured $465 million in U.S. financing to expand, while Canada’s Aclara Resources is advancing a project targeting production before 2028.
The U.S. push coincides with heightened trade tensions with China, including Beijing’s 2025 restrictions on strategic mineral exports. In response, Washington is mobilizing development finance through agencies like the U.S. International Development Finance Corporation (DFC) and the Export-Import Bank to support Brazilian projects. A $3 billion U.S.-Australia critical minerals deal serves as a potential model. Diplomatic relations, once strained, have improved since late 2025, creating a window for engagement. U.S. chargé d’affaires Gabriel Escobar has already held consultations with Brazilian industry groups.
However, the U.S. is not alone. The European Union is also negotiating with Brazil for access to rare earths, lithium, and nickel, as part of its own strategy to secure raw materials. This competition could grant Brazil greater bargaining power and investment. Analysts at Eurasia Group see a high probability—around 75%—of a formal U.S.-Brazil deal, possibly seeing progress by early 2026. A potential agreement would likely focus not just on mining but also on building processing capacity outside China, a critical bottleneck.
The race for Brazilian resources underscores how critical minerals have moved to the center of geopolitical strategy. As the clean energy transition accelerates, controlling these supply chains has become a paramount concern for major powers. Whether the U.S. and Brazil can forge a stable partnership will help determine the pace of reducing global dependence on China and shape the next phase of competition for the resources underpinning the global energy and technology future.
