EU and Brazil move toward critical minerals partnership

European Commission International Partnerships Commissioner Jozef Sikela said the EU is close to concluding a memorandum of understanding with Brazil on critical minerals, aiming to invest in domestic refining and processing capacity. The deal would focus on creating stable, value‑added supply chains for rare earths and other critical minerals, moving beyond the export of raw ore.

Sikela emphasized that the EU offer is intended to be “more beneficial” than proposals from the United States or China, highlighting co‑investment, technology transfer and sustainability. Brazil, which holds the world’s second‑largest rare‑earth reserves, is pursuing legislation that requires minerals to be processed on‑shore before foreign access, seeking higher‑margin businesses and local industrial development. Negotiations are ongoing with no fixed signing date yet.

The partnership is part of Brazil’s broader strategy to attract external capital while retaining greater control over the entire minerals value chain, aligning with the EU’s goal of reducing dependence on Chinese supply chains.