The Brazilian government under President Luiz Inácio Lula da Silva (PT) intends to create a dedicated policy for critical minerals and rare earths, moving the country beyond simply exporting raw minerals. According to Folha de S.Paulo, the plan aims to organize productive chains, differentiate technological uses, and avoid mere export of strategic raw materials.
The initiative is part of Lula’s broader government program, which emphasizes adding value to Brazil’s mineral wealth by encouraging domestic manufacturing of goods such as batteries and electric motors. Sources involved in drafting the program say the goal is to maintain existing federal efforts while signaling to companies that production can and should occur locally.
To stimulate internal demand, the government cites examples like the upcoming auction for energy storage systems in large batteries, expected to be launched later this year. Such technology could help stabilize the national electric grid and would require significant lithium output, among other inputs.
Although the 80-plus page government program mentions rare earths only once, it highlights the technological use of critical minerals, noting graphite findings in twenty drillings conducted in Minas Gerais. The document does not reference foreign interest in Brazilian rare earths, but stresses the need to improve Brazil’s external economic insertion to enhance competitiveness.
Lula’s plan also calls for stimulating industrial exports, expanding presence in new markets, and concentrating the export agenda on higher‑value‑added products, while continuously refining trade‑defense instruments. The omission of explicit reference to the United States in the petista program is described as a tactic to reinforce a multilateralist discourse and signal openness to investment from all countries.
The proposal reflects a shift from a commodity‑export model toward a strategy that seeks to capture more value within Brazil’s borders, aligning with global trends where nations aim to secure supply chains for components essential to clean energy and advanced manufacturing.