Brazil enacts new policy to industrialize critical mineral production

Brazil has enacted the National Policy for Critical and Strategic Minerals (PNMCE), Law No. 15.506/2026, aimed at developing domestic production chains for resources essential to the energy transition and technological innovation. The policy targets minerals such as lithium, nickel, graphite, niobium, and rare earths. To support this, the government has established the Mineral Activity Guarantee Fund (FGAM) with a potential federal contribution of up to R$ 2 billion.

President Luiz Inácio Lula da Silva emphasized a strategic shift from being a mere exporter of raw materials to a hub for industrialization. The goal is to ensure that minerals are extracted, processed, and manufactured within Brazil to capture higher value-added profits, create skilled jobs, and increase tax revenue. This industrial strategy also extends to digital infrastructure, with a focus on developing national data centers and artificial intelligence capabilities to reduce foreign dependency.

To support these ambitions, investments in the Geological Survey of Brazil (SGB) for subsoil research are projected to rise from R$ 8 million in 2026 to R$ 300 million in 2027. Additionally, the mining sector is expected to see significant infrastructure demands, with projected investments of US$ 76.9 billion between 2026 and 2030, necessitating robust electrical grid expansions to support increased production capacity.