Lula’s election win dashes US hopes of quick access to rare earths
Lula's government plans new regulations for the sector to be set out by the new CIMCE
The reelection of Brazilian President Luiz Inacio Lula da Silva has complicated US President Donald Trump's attempts to secure rapid access to Brazil's substantial rare earth reserves. Should Lula's rival Flavio Bolsonaro, whose family is connected to Trump, win next month's election, US investment in Brazil's mineral industry could have accelerated.
However, Lula's administration intends to introduce new regulations overseen by the National Council for the Industrialization of Critical and Strategic Minerals (CIMCE). Lula has cautioned against a 'colony-style' rush by outsiders to exploit Brazil's natural resources without contributing to the nation's development. CIMCE members advocate producing, processing, and adding value to these minerals within Brazil, akin to China's approach over the past three decades.
Trump had sought preferential access to Brazil's rare earths, pressing Brazil to halt prosecution against former President Jair Bolsonaro, who is currently serving a 27-year sentence for a coup attempt. Now, Brazil aims to involve foreign investors in processing and refining locally and sharing technology.
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