Brazil's Lula pushes critical minerals policy to boost sovereignty

On July 10, 2026, President Luiz Inácio Lula da Silva convened a ministerial meeting at the Palácio do Planalto to outline Brazil's National Critical Minerals Policy. The agenda focused on turning the country’s large reserves of rare earths, lithium, nickel, copper and other strategic minerals into a source of financial and technological sovereignty.

The draft law, approved by the Chamber of Deputies in May, creates a presidential council with authority to prioritize projects, vet foreign acquisitions of critical mineral assets and regulate export contracts. It also proposes a guarantee fund of up to R$ 5 billion and a tax‑credit scheme to spur domestic processing and value‑addition, aiming to shift Brazil from raw‑material exporter to a producer of advanced technologies.

Lula criticised past privatizations and warned that the United States’ former president Donald Trump “envies” China’s dominance in rare‑earth knowledge, while rejecting a U.S. proposal for a minerals‑alliance that could limit Brazil’s autonomy. Within the government, the Ministry of Mines and Energy favors flexible rules to keep investors, whereas a faction close to Lula pushes stricter measures such as export taxes.

Private‑sector groups expressed concern that vague veto powers could increase regulatory uncertainty. The bill remains stalled in the Senate, held up by a political dispute with Senate president Davi Alcolumbre. Ministers from Mining, Planning, Foreign Affairs, Finance and others, together with representatives from Vale, BNDES and academia, attended the meeting to discuss financing, licensing and industrial‑policy strategies.