US critical minerals proposals to Brazil go unanswered as China looms
Brazil has not answered two American proposals to formalise cooperation on critical minerals, a senior US diplomat said at Latin America’s largest mining fair, leaving Washington without a bilateral deal as it races to build rare earth supply chains outside China. Matthew Lowe, economic counsellor at the US embassy in Brasilia, said Washington invited Brazil years ago to join the Minerals…
US diplomats expressed frustration at Brazil's lack of response to bilateral proposals aimed at formalizing cooperation on critical minerals, leaving the United States without a deal as it seeks to diversify rare earth supply chains away from China. Matthew Lowe, US embassy economic counsellor in Brasilia, revealed that the US had invited Brazil to join the Minerals Security Partnership years ago but received no reply.
A draft framework agreement sent in February also went unanswered. Lowe stated that they may have to wait until Brazil's presidential election in October. At the Exposibram mining fair, Lowe was among officials from France, Canada, Australia, and Britain who discussed their strategies to reduce China's dominance in mineral processing.
Brazil possesses the world's second-largest reserves of rare earths after China, a resource that attracted the five nations to the fair. Rare earths are a group of 17 metals crucial in various modern technologies, including electric car motors, wind turbines, and guided weapons. China is responsible for nearly 90% of global rare earth processing.
Lowe emphasized that separation technology is underdeveloped due to China's control over the market. Benjamin Gallezot, France's interministerial delegate for strategic minerals, highlighted that refining is the choke point in the rare earth supply chain and that Brazil has the necessary resources and permitting to establish processing capacity outside China.
USA Rare Earth, a joint venture between US government agencies and private investors, plans to acquire the Brazilian miner Serra Verde for $2.8 billion, which has exclusive rights to produce four rare earth elements used in permanent magnets. However, Serra Verde currently supplies these elements to Chinese processors, and the company has renegotiated its contract with China, cutting almost eight years off the original 10-year commitment.
The US embassy has pursued state-level agreements, including a memorandum with the state of Goias, but has faced criticism over the legality of the deal. Brazilian President Luiz Inacio Lula da Silva, who is seeking a fourth term, has vowed to prevent foreign exploitation of the country's mineral resources and processing.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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