US and EU Race to Secure Brazil's Rare Earth Supply

The United States, through its Development Finance Corporation (DFC), announced plans to finance critical‑minerals projects in Brazil, targeting lithium, nickel, copper, rare earths and other strategic inputs. The move aims to bolster supply chains for AI, electric batteries and renewable energy while reducing reliance on China.

In parallel, the European Union accelerated negotiations with Brazil after a U.S. firm acquired the Serra Verde rare‑earth mine for about $2.8 billion, securing fifteen years of early output. Brazil, which holds the world’s second‑largest rare‑earth reserves, seeks to keep processing on Brazilian soil, a condition not met by the U.S. deal. The competition underscores Brazil’s leverage as both Washington and Brussels vie for stable, diversified sources of critical minerals.

Both initiatives reflect broader geopolitical competition over supply chain security, with Brazil positioned as a key partner for infrastructure and mining projects that align with U.S. and EU strategic interests.