US pushes for critical minerals pact in Brazil

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The US is moving to secure its critical minerals supply chain, and it sees Brazil as an essential partner.

The US Embassy in Brazil has been mapping over 50 projects that could turn the country into an investment hub.

The numbers speak for themselves: Brazil holds the world's largest niobium reserves and is a powerhouse in graphite, rare earths, nickel, and lithium.

US agencies have already deployed $600 million toward Brazilian critical minerals projects, and on April 20, USA Rare Earth acquired the only rare earth producer in Brazil for $2.8 billion. 

But Brazil is no longer interested in just being a raw material exporter. Instead, the country is focusing on local industrialization, creating a sustainable and end-to-end value chain. 

While federal talks between Washington and Brasilia continue, the US is signing direct cooperation deals with mineral-rich states like Goiás.

Both countries are prioritizing the de-risking of their critical mineral sectors, aiming to bypass Chinese dominance over the processing of essential elements.

But the success of the alliance with Brazil depends on whether US capital can meet green industrial ambitions fast enough to secure a leading role in the global energy race.