Brazil seeks to integrate regional critical mineral supply chains

Brazil is working to integrate critical mineral supply chains among Mercosul members and Chile to bolster the region's role in the global energy transition. A technical cooperation agreement has been signed between the Brazilian Ministry of Mines and Energy and the CAF (Development Bank of Latin America and the Caribbean) to conduct studies aimed at identifying opportunities for regional integration, increasing competitiveness, and adding value to mineral production.

The initiative includes mapping the mineral potential of Mercosul and Chile, projecting global demand for strategic minerals through 2050, and creating a regional mineral database. The studies will also compare regulatory frameworks to identify obstacles to cross-border production chains and develop a portfolio of strategic projects.

Domestically, Brazil aims to move beyond the mere extraction and export of raw materials. Discussions involving the government and BNDES emphasize the need to expand processing and industrial activities for minerals such as copper, lithium, and rare earths. These materials are essential for electric vehicles, batteries, and decarbonization technologies. To support this, the government is developing long-term planning instruments, including the National Mining Plan 2050, and seeking financing for geological mapping through agreements with international development banks.