Brazil’s Lula hails ‘bold’ Chinese investors as rival pitches rare earths to Trump

Brazilian President Luiz Inacio Lula da Silva highlighted China as a potential partner for the country's critical minerals plans during an interview on Thursday evening, just three days before the country's election. Lula expressed a desire to transform raw ores into finished minerals within Brazil, indicating that China could contribute by offering technology.

He also mentioned the United States as another possible partner, emphasizing that Trump should "take care of the United States" while Lula takes care of Brazil. Both the United States and China are seeking alternative sources of rare earths outside of China's control, as both countries hold significant reserves. Lula's main rival, Senator Flavio Bolsonaro, has been courting the Trump administration and has emphasized Brazil as a "real alternative to China for the free world" in terms of rare earths.

Bolsonaro met with Trump at the White House in May and promised a "long-term strategic partnership" on rare earths with "shared re-industrialisation". Lula opted to give a podcast interview instead of participating in TV Globo's final televised debate, which was cancelled at the last minute. A recent poll indicated that Lula received 45% of valid votes, while Bolsonaro garnered 40%, suggesting a run-off election in October.

Both Chinese and American companies are already engaged in mining operations in Brazil's Goias state, where Chinese miner CMOC acquired Anglo American's niobium operations in 2016. In April, American company USA Rare Earth agreed to purchase Serra Verde, a rare earths mine in Goias, for approximately $2.8 billion. Lula signed a law in September that established a council under the presidency's authority to oversee the sector, which will review foreign investments in strategic projects and provide tax incentives for processing until 2034.