Americore Resources (TSXV: AMCO)
Drilling Value in the Silver State
Brazilian President Luiz Inácio Lula da Silva and U.S. President Donald Trump held their first bilateral meeting on U.S. soil Thursday, with critical minerals partnership topping the agenda as Washington seeks to cut its rare earth supply chain dependence on China. The months-in-the-making working visit skips state visit formalities to focus on core policy priorities, with Brazilian officials ruling out no discussion topics but drawing a non-negotiable line on national sovereignty ahead of Brazil’s October presidential election.
Critical minerals are the foundational input for defense, clean energy and advanced manufacturing, powering everything from fighter jets and semiconductors to electric vehicles and AI systems.
The U.S. has ramped up supply chain diversification efforts via initiatives including Project Vault, after China’s 2025 rare earth export restrictions laid bare its dominant market leverage. Brazil holds 20% to 23% of global rare earth reserves — the world’s second-largest, trailing only China — with vast deposits of other strategic minerals for high-end production.
The talks come just days after U.S. firm USA Rare Earth closed its acquisition of Serra Verde, Brazil’s only commercially operating rare earth miner. Brazil’s Mines and Energy Minister Alexandre Silveira joined Lula’s delegation at the last minute, a late addition that underscores the issue’s outsize priority in negotiations.
Brazilian officials have explicitly tempered expectations, saying no final formal critical minerals agreement will emerge from the meeting. They frame the partnership as a long-term project requiring sustained, multi-round negotiations, not a single-sitting breakthrough.
Brazil is open to cross-border collaboration but rejects being reduced to a mere commodity exporter, prioritizing domestic mineral processing and in-country value addition. It has also pursued a diversified partnership strategy, including a recent critical minerals deal with India, to avoid overreliance on a single market.
Brazil shored up its negotiating hand hours before Lula’s U.S. departure, when its lower house passed landmark critical minerals legislation Wednesday. The bill offers tax incentives for domestic processing, dedicated project tax credits and a mining investment guarantee fund, while creating an oversight council with authority to block foreign acquisitions of domestic mineral assets. The bill, now pending Senate approval, formalizes Brazil’s sovereignty safeguards but has sparked industry concerns over regulatory uncertainty.
The high-stakes meeting is deeply intertwined with Brazil’s domestic political calendar. With October’s election looming, Lula is looking to reverse sliding approval ratings by defending Brazil’s national interests on the global stage. He has warned the Trump administration against interfering in Brazil’s domestic affairs or commenting on its democratic institutions, framing national sovereignty as non-negotiable.
Beyond the core minerals agenda, the talks address a slate of bilateral frictions.
Top of the list are U.S. tariff hikes on Brazilian exports, with Lula’s team seeking to challenge the measures and prevent the reimposition of tariffs previously suspended by the U.S. Supreme Court. The delegation will also push back on what it calls “undue lobbying” behind the ongoing Section 301 investigation into Brazil’s Pix instant payment system, while clarifying the platform’s operating rules.
On public security, the two sides will discuss collaboration on cross-border drug trafficking, arms smuggling and money laundering. Brazil will also formally oppose the Trump administration’s decision to label Brazilian criminal groups PCC and CV as terrorist organizations.
While both sides share mutual interest in deeper critical minerals cooperation, competing priorities around sovereignty, industrial development and domestic politics mean any binding, formal deal will be a gradual process. No immediate breakthrough is expected from Thursday’s talks.
