March 20th, 2026 - Brazil Resists U.S. Push for Rare Earths Deal, Prioritizing Control Over Its Resources

The United States is pushing Brazil to enter a major agreement to develop and export critical minerals, aiming to secure key resources needed for future technologies and national defense. According to officials from both countries, Washington is seeking to invest billions of dollars into Brazil’s mining sector as part of a broader strategy to reduce reliance on China’s dominance in global mineral supply chains.

Brazil, however, has shown resistance to the proposal. While it holds some of the world’s largest reserves of critical minerals, including rare earth elements, lithium, and niobium, Brazilian officials want to maintain control over these resources and avoid becoming overly dependent on a single partner. The government has made clear it intends to diversify its trade relationships rather than commit exclusively to the United States.

U.S. officials have already taken steps to advance the partnership, including hosting a major critical minerals forum in São Paulo and identifying dozens of potential investment projects. Despite these efforts, Brazil’s federal government declined to participate in the event, signaling hesitation about Washington’s approach. Some Brazilian officials view the U.S. push as overly aggressive and an attempt to shape the country’s domestic resource policy.

At the heart of the issue is control. Under Brazilian law, mineral resources belong to the government, and federal approval is required for companies to access them. Brazil is also working to move beyond simply exporting raw materials by building its own domestic supply chains; mining, processing, and manufacturing products like magnets within the country before exporting them abroad.

The United States, meanwhile, is looking to secure priority access to these materials in exchange for its investment. This is part of a broader effort by the Trump administration to strengthen supply chains and compete with China, which currently dominates the extraction and processing of many critical minerals essential for technologies like electric vehicles, defense systems, and advanced electronics.

Geopolitics is also complicating negotiations. Brazil is balancing relationships not only with the United States but also with partners like the European Union and India, both of which are pursuing their own agreements on critical minerals. Ongoing diplomatic tensions and recent controversies have further slowed progress toward a deal between Washington and Brasília.

Despite the challenges, experts say both countries have strong incentives to reach an agreement. American investment and expertise could help Brazil unlock the full potential of its mineral reserves, while Brazil’s resources could help the United States reduce its dependence on China. For now, however, negotiations remain stalled as both sides weigh economic opportunities against strategic independence.

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