Reuters Analysis: Lula's Reelection Dashes US Hopes of Fast Access to Brazil's Rare Earths as Brasilia Prioritizes Domestic Processing
Rio de Janeiro — Lula's reelection will likely dash President Donald Trump's hopes of securing fast access to Brazil's rare earth reserves, the world's second largest, Reuters reported in an analysis on November 5. Instead, Lula's government plans new regulations for the sector that will prioritize processing rare earths inside Brazil rather than exporting them as raw materials.
A victory for Lula's challenger Flavio Bolsonaro, whose family is close to Trump, could have sped up U.S. investment in Brazil's mineral wealth. Instead, three members of the newly created National Council for the Industrialization of Critical and Strategic Minerals (CIMCE) told Reuters, ahead of the council's first meeting on Thursday, November 5 — which Lula was set to attend — that U.S. investment will still be welcome, but the council will prioritize domestic processing. The new rules will govern investment incentives and the classification of priority projects.
The council also has powers to ratify changes of corporate control at companies holding mining rights for critical and strategic minerals, and to approve international contracts, agreements and partnerships involving their supply, to ensure "economic or geopolitical security." The government aims to move quickly so the regulations can be presented within the first few months of 2027. Lula signed Brazil's National Policy for Critical and Strategic Minerals into law about two weeks before the first round of voting, and has warned against a colonial-style scramble by outsiders for Brazil's natural resources.
The only Brazilian rare earth project operating commercially so far is the Serra Verde mine, acquired in September by the U.S. government-backed USA Rare Earth. China controls the world's largest rare earth reserves, and securing supplies elsewhere has become a U.S. policy focus; a State Department official with knowledge of the discussions told Reuters earlier this year that Trump had wanted preferential access to Brazil's rare earths.
(Source: Reuters)
Source: Reuters
Published by GSM · USA (original Chinese edition)
Photo: 图：巴西总统卢拉与美国总统特朗普（2026年5月）。照片 CC BY-SA 4.0，经 Wikimedia Commons。 / Photo: Brazilian President Lula da Silva with U.S. President Donald Trump (May 2026). CC BY-SA 4.0, via Wikimedia Commons.
