US in talks with Brazil on rare earth partnership: FT

[Ben Graham]

The US is exploring the possibility of forming a rare earths partnership with Brazil, as Washington steps up efforts to reduce the nation’s reliance on mineral supplies from China, the Financial Times reported.

Officials from both countries have held preliminary meetings that include government representatives, industry stakeholders and financial institutions, the FT reported early on Sunday, citing officials involved in recent discussions.

“There’s nothing but opportunity here,” one official told the British paper. “Brazil’s government is open to a deal on critical minerals.”

Some diplomats and lobbyists see a “chance of a deal” materializing, following a tentative rapprochement between US President Donald Trump and his Brazilian counterpart Luiz Inácio Lula da Silva.

Reuters reported last October that America’s top diplomat in Brazil, Gabriel Escobar, held discussions about rare earths with Brazil’s mining industry association, Ibram.

Untapped rare earths

A move to untap Brazil’s substantial rare earth deposits — estimated to be the second-largest in the world — represents part of the US government’s broader strategy to diversify its critical minerals supply chain.

China currently accounts for a majority of the world’s production of rare earths, a group of 17 metallic elements used in key technologies from electric vehicles to defence systems. Beijing’s dominance in both the mining and processing of rare earths was accentuated when it restricted exports of some minerals last April as a direct response to US trade policies.

Since then, the Trump government has moved to secure partnerships with other mineral-rich nations, such as Australia and the Democratic Republic of the Congo. Brazil, with its geological advantage, looks to be next on the agenda, as initial talks had already taken place as early as December, according to FT sources.

For years, Brazil’s mineral projects have been slowed by bureaucratic and investment hurdles. Only about 30% of Brazil’s territory has been thoroughly mapped for mineralogy, a representative from the Geological Survey of Brazil told FT.

Late last year, Brazil launched the National Mining Policy Council with a view of reinvigorating the country’s development of its resources, with a focus on critical minerals and rare earths.

Brazil’s only active rare earth producer, Serra Verde, has already secured US financing of about $465 million to expand its production. A proposed project by Canada’s Aclara Resources is also in early stages, with production targeted for later this decade.

Serra Verde makes global list of critical projects

Hurdles

For a deal to happen, the US must overcome competition from Europe. Last week, European Commission President Ursula von der Leyen confirmed discussions with Brasília about potential partnerships on critical raw materials, including investments in rare earths. President Trump would also face diplomatic concerns for his aggressive trade policies and support of Brazil’s former president Jair Bolsonaro.

Still, political analysts lean towards Brazil’s co-operation with the US after these tensions thawed towards the end of 2025. One consultant cited by FT said he expects a US-Brazil agreement on critical minerals soon.