The Brazilian Senate approved on September 3 the law establishing a national policy for the processing and industrialization of critical and strategic minerals, following the initial approval by the Chamber last May. The final promulgation by President Lula is now awaited.
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The objective
The regulation marks a change of pace: the goal is to retain technological and productive resources within the national territory, overcoming the logic of mere export and discouraging foreign investments.
Brasilia’s move fits into a context of strong international tensions exacerbated by the trade wars initiated by Donald Trump. With Beijing having started to use its resources as a bargaining weapon – culminating in last year’s export restrictions – the West has begun to seek alternative suppliers.
According to data from Associated Press and Reporter Brasil, in the first six months of 2026 Brazil attracted massive capital flows directed to the sector, mainly from the United States, Australia, and Canada.
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Brazil as the world’s second potential supplier
Although Brazil is the world’s second potential supplier of rare earths by reserves (over 20 million tons, about 23% of global reserves), its actual production is negligible because the country lacks refining and processing infrastructure, a sector in which the “Dragon” holds an almost total monopoly. The new law aims to fill this gap but risks in the short term causing Brazil to lose important foreign investments, as the necessary internal technological resources for production autonomy are still lacking.
Environmental risks
Added to this is a serious ecological and social cost. The only active producer in the territory is Serra Verde, an asset acquired by the United States after the final agreement last April, whose operations often focus near protected areas and indigenous territories. Extraction and processing processes involve high risks of deforestation, pollution, and the release of radioactive waste and toxic chemicals into the environment.
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