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President Luiz Inácio Lula da Silva and Goiás Governor Ronaldo Caiado have opened a political fight over rare earth minerals, foreign investment and who can negotiate Brazil’s strategic resources.
According to Brasil Paralelo, Lula criticized Caiado over international memorandums involving the United States and Japan, saying the prospective presidential candidate could not make such commitments without approval from the federal government. The president also said initiatives of that kind could “sell Brazil.”
Caiado answered at an agribusiness event in Belo Horizonte, the capital of Minas Gerais state. “The one selling is him,” the governor said, according to Brasil Paralelo, in single-source reporting on the exchange.
Why Goiás Matters
Goiás, a central Brazilian state, has become one of Brazil’s most important rare earth hubs because it hosts Serra Verde, the company behind the Pela Ema mine. Today in Brazil previously reported that USA Rare Earth said on April 20 it had reached a definitive agreement to buy Serra Verde for about $2.8 billion.
The deal combines $300 million in cash with roughly 126.8 million to 126.9 million newly issued USA Rare Earth shares, depending on rounding reported by the sources cited in Today in Brazil’s earlier article. The companies said closing is expected in the third quarter of 2026, subject to regulatory approvals and customary conditions.
Serra Verde’s operation is described by the companies and Brazilian outlets as the only large-scale producer outside Asia of four magnetic rare earth elements used in high-performance magnets. Those materials are important for electric vehicles, wind turbines and defense equipment.
The Strategic Dispute
The political tension reflects a broader global race to reduce dependence on China, which dominates rare earth processing and refining. USA Rare Earth has said Serra Verde could account for more than 50% of heavy rare earth supply outside China by 2027 if the companies’ projections hold.
Caiado argues that Brazil should stop exporting raw material while other countries capture the higher value from processing and technology. He said Brazil continues to sell minerals “as in the colonial era,” citing niobium and rare earths, according to Brasil Paralelo.
The governor says the agreements with the United States and Japan are meant to attract technology, support domestic industry and reduce external dependence. He argues the aim is to export processed products with higher added value rather than remain a supplier of basic inputs.
Federal Concerns
The point of friction is not only foreign ownership. Brasil Paralelo reported that one agreement provides for the sharing of geological data with the US government in projects backed by American partners.
Part of the federal government sees risk in that clause, according to the outlet. The concern is that strategic information about mineral reserves could be transferred to a foreign power before Brazil has defined a regulatory framework for the sector.
Caiado did not detail that point in the Brasil Paralelo report. He maintained that the agreements are needed to bring in technology and reduce dependence on outside processing chains.
Energy and 2026
The exchange also widened into energy policy. Caiado said Petrobras, Brazil’s state-controlled oil company, should reduce monopolies that he says hold back development, including in natural gas distribution.
He also backed oil exploration in the equatorial margin, a frontier area off Brazil’s northern coast, and raised concern about Brazil’s dependence on imported fertilizers.
The clash shows how rare earths have moved from a mining story into a sovereignty, industrial policy and campaign issue. It also gives an early sign of how strategic resources may feature in Brazil’s 2026 presidential race.
Fonts: https://www.brasilparalelo.com.br/noticias/caiado-responde-lula-sobre-acordos-com-eua-e-japao-envolvendo-terras-raras https://todayinbrazil.com/article/us-firm-buys-brazil-rare-earth-miner
accessed on 28 April 2026