The United States is working to establish a partnership with Brazil focused on securing critical mineral supply chains, according to U.S. Chargé d’Affaires Gabriel Escobar, even as diplomatic relations between the two nations face significant challenges.
Escobar made the announcement Wednesday following the signing of a preliminary cooperation agreement with Brazil’s Goias state, just ahead of a U.S. embassy event connecting American investors with Brazilian companies involved in critical mineral production. Major firms including Citi and Anglo American participated in the gathering.
“We have a proposal for a deal at the federal level. We are discussing it, we had some preliminary discussions, but we’re still waiting,” Escobar stated during the event.
The push comes as America works urgently to secure access to critical mineral reserves, particularly rare earth elements that are currently controlled primarily by Chinese companies.
However, recent diplomatic friction has complicated these efforts. Brazilian officials withdrew from the embassy event after relations deteriorated when a hard-right U.S. official requested permission last week to visit former President Jair Bolsonaro in prison. Brazil viewed this as interference in its internal affairs and denied entry to the envoy, citing “falsification” of visit purposes.
Sources revealed to Reuters that Brazilian authorities received a memorandum of understanding proposal in February, though it initially contained errors including another country’s name before corrections were made.
Current negotiations involve the U.S. Trade Representative’s office and are being considered as part of a potential visit by Brazilian President Luiz Inacio Lula da Silva to Washington. However, an anticipated meeting between Lula and President Donald Trump scheduled for this month has been delayed due to the U.S.-Israel conflict with Iran and ongoing diplomatic tensions.
Brazilian officials privately expressed frustration over the U.S. decision to partner directly with Goias Governor Ronaldo Caiado, who opposes President Lula politically. One Brazilian official characterized this as an attempt to circumvent federal authority.
The Goias agreement establishes cooperation in multiple areas including mineral mapping, connecting local mining operations with American technology, and regulatory improvements, according to state government statements.
Goias possesses significant reserves of lithium and niobium, and hosts Serra Verde, the only company currently producing rare earths commercially in Brazil with U.S. backing.
State officials said the partnership aims to advance “value-added processing and manufacturing capabilities, including rare earth separation” within Goias.
Developing domestic processing capabilities remains a key priority for President Lula, according to a Brazilian foreign trade ministry official who spoke anonymously about ongoing negotiations.
American officials believe the potential exists for billions of dollars in investment and have identified over 50 Brazilian mining projects that could support international efforts to diversify supply chains and reduce China’s control over critical minerals.
