Brazil Critical Minerals: Government Launches Commission to Map and Control National Wealth

The global race for minerals powering the green revolution just took a decisive turn in South America. President Luiz Inácio Lula da Silva has unveiled a landmark commission to seize control of Brazil’s untapped mineral wealth—a strategic move to prevent foreign exploitation as demand for lithium, cobalt, and rare earths skyrockets. With only 30% of its resource-rich territory explored, Brazil aims to catalog and nationalize deposits essential for electric vehicles and renewable energy, declaring, “These minerals belong to the Brazilian people.”

Brazil Critical Minerals Commission Takes Charge

The newly formed commission will identify and regulate lithium, rare earths, cobalt, and nickel reserves across Brazil’s vast territory. President Lula emphasized minerals will not be “bargaining chips” in international trade, particularly as the U.S. prepares to impose 50% tariffs on Brazilian goods. Companies may explore resources only under strict state oversight, with all sales channeled through government-approved entities.

Brazilian officials confirm licenses will be limited to firms committing to domestic value addition. “We choose our partners,” Lula stated, rejecting foreign pressure to include minerals in trade deals. This stance echoes policies in resource-rich nations like Indonesia and Chile, which now mandate local processing of raw materials. According to the Brazilian Mining Association (2024), the commission could unlock over $20 billion in investments while ensuring state royalties fund national development.

Global Context and Brazil’s Strategic Advantage

Brazil enters the fray as a sleeping giant. Already a top-five global lithium producer (U.S. Geological Survey, 2023), it holds massive untapped reserves of niobium (used in steel alloys) and rare earths. Minerals generated nearly 80% of Brazil’s trade surplus in early 2025, with China absorbing most exports. Yet licensing hurdles and community opposition have slowed extraction.

The government is countering these challenges with:

• $3.2 billion in mining sector modernization (Brazilian Ministry of Mines and Energy, 2024)
• Tax incentives for battery and EV component manufacturing
• Partnerships with Asian and European tech firms to build local supply chains

As International Energy Agency projections (2024) indicate global lithium demand will quadruple by 2030, Brazil’s commission positions it to leverage scarcity. “This isn’t about isolation—it’s about negotiating from strength,” remarked energy analyst Carla Rocha.

Brazil’s critical minerals strategy marks a pivotal shift from raw exporter to value-chain architect. By controlling these 21st-century commodities, the nation secures bargaining power in clean-energy geopolitics while funding industrialization and jobs. For global investors, the rules are clear: partner with Brazil on its terms or miss the critical minerals revolution. Track Brazil’s licensing framework updates to navigate this transformed landscape.

Must Know

Why did Brazil create this commission now?
Global competition for minerals essential to renewables and EVs is intensifying. With 70% of Brazil’s mineral potential unexplored, the commission prevents foreign monopolies while capitalizing on surging demand. U.S. tariffs and EU critical minerals acts accelerated the move.

Which minerals are priorities?
Lithium (for batteries), rare earths (wind turbines), cobalt, and nickel (EV components) top the list. Brazil already leads in niobium and iron ore but seeks high-value roles in processed goods like battery cathodes.

Can foreign companies participate?
Yes, but under strict conditions: joint ventures with Brazilian firms, domestic processing mandates, and revenue-sharing agreements. The government will select partners aligning with national development goals.

How will this affect global supply chains?
Brazil could become a major supplier, reducing reliance on China and Congo. However, its export controls may push prices higher temporarily as industries adapt to new sourcing rules.

What are the main obstacles?
Environmental licensing delays and indigenous land rights disputes persist. The commission must balance rapid mapping with sustainable practices to avoid project suspensions like those in the Amazon.