US, Brazil Hold Early Talks On Rare Earth Partnership: Report

• FT reports early US-Brazil talks on rare earth cooperation

• Washington seeks to cut reliance on China-dominated supplies

• Brazil holds world’s second-largest rare earth reserves

• Europe also competing for Brazilian critical minerals deals

The United States is exploring a potential rare earth partnership with Brazil as part of a broader effort to cut its dependence on Chinese mineral supplies, the Financial Times reported, citing officials familiar with the discussions.

Preliminary meetings have taken place between government officials, industry executives and financial institutions from both countries, according to the report. One official told the newspaper there was “nothing but opportunity” in the talks, adding that Brazil’s government was open to a deal on critical minerals.

The discussions come as Washington steps up efforts to diversify supply chains for rare earth elements, a group of 17 metals essential for electric vehicles, renewable energy equipment, electronics and defence systems. China currently dominates both the mining and processing of rare earths, and tightened export controls on some minerals last April in response to U.S. trade measures, heightening concerns in Western capitals about supply security.

After China, stands second-largest source

Brazil is emerging as a key alternative. Its rare earth reserves are estimated to be the world’s second-largest after China, but remain largely undeveloped. Only about 30 per cent of the country’s territory has been thoroughly mapped for mineral resources, a representative of the Geological Survey of Brazil told the Financial Times.

The talks reflect a tentative improvement in relations between U.S. President Donald Trump and Brazilian President Luiz Inácio Lula da Silva, after months of strained ties. Diplomats and lobbyists cited by the newspaper said there was now a realistic chance of a formal agreement.

Washington’s outreach builds on earlier contacts. Reuters reported in October that the top U.S. diplomat in Brazil, Gabriel Escobar, had met the country’s mining industry association, Ibram, to discuss rare earth cooperation. According to FT sources, initial negotiations on a broader partnership had already begun in December.

Brasília has recently moved to revive its mining sector. Late last year, the government launched a National Mining Policy Council to accelerate development of critical minerals and rare earths. Investment is already flowing into the sector: Serra Verde, Brazil’s only active rare earth producer, has secured about $465 million in U.S. financing to expand production, while Canada’s Aclara Resources is advancing an early-stage project with output planned later this decade.

EU Confirms Discussions with Brazil

However, competition and diplomacy could complicate the talks. European Commission President Ursula von der Leyen confirmed last week that the European Union is also discussing potential critical minerals partnerships with Brazil. Analysts say Trump’s aggressive trade stance and past support for former Brazilian president Jair Bolsonaro may weigh on negotiations.

Even so, political analysts cited by the Financial Times said momentum had improved since tensions eased toward the end of 2025, and a U.S.–Brazil agreement on critical minerals could be reached soon.

If concluded, the partnership would mark a significant step in Washington’s strategy to reshape global supply chains and reduce strategic dependence on China in a sector increasingly viewed as vital to economic and national security.

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