Lula's election win dashes US hopes of quick access to Brazil's rare earths
XLB•Lula's reelection is likely to delay US hopes for quick access to Brazil's rare earths as the government prioritizes processing and refining the minerals domestically. New rules are expected within the first few months of 2027.
1. Brazil prioritizes local processing
Brazil's government plans new rules for rare earths and other critical minerals, with the National Council for the Industrialization of Critical and Strategic Minerals (CIMCE) prioritizing processing in Brazil over exports of raw materials. Council member Marco Lage said the goal is to produce, process and add value in the country, while also investing in research and development.
2. Rules expected in 2027
At its first meeting, CIMCE classified 27 minerals as within its remit, including rare earths, which it designated a high priority. The council can ratify changes in corporate control at companies holding mining rights and approve international supply contracts and partnerships. New rules are expected within the first few months of 2027.
3. Investors seek clarity
Brazil welcomes US investment but wants foreign investors to process and refine minerals locally and share technology. Aclara Resources CEO Ramon Barua said Brazil would first need to acquire the technology for rare earth separation. The Serra Verde mine is the only commercially operating rare earth mine in Brazil, and its owner, USA Rare Earth, does not expect it to reach full capacity until the end of next year.
