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| Brazil Critical Minerals |
US Pushes for Brazil Critical Minerals Processing Capacity
The US is actively negotiating with Brazil to develop critical minerals processing capacity. Meanwhile, US Assistant Secretary Caleb Orr emphasized Brazil's rich rare earth and heavy mineral reserves. As a result, the US aims to secure supply chains for strategic metals critical to defense and high-tech industries. Therefore, financing and technical cooperation through the Development Finance Corporation (DFC) are central to these plans.
Strategic Implications for Rare Earth and Scrap Metal Markets
Brazil hosts the world’s largest niobium reserves and ranks high in rare earths, graphite, nickel, and lithium. Consequently, global rare earth supply could diversify if Brazil scales heavy rare earth processing. In contrast, current production accounts for less than 1% of global output. Scrap and secondary metal markets may see indirect benefits from expanded downstream rare earth and lithium processing facilities.
Regulatory and Investment Outlook in Brazil
Brazilian President Luiz Inacio Lula da Silva prioritizes domestic industrialization for foreign mineral projects. Meanwhile, Brazil seeks end-to-end value chains, requiring investors to build downstream processing locally. Therefore, fiscal incentives and strong US-Brazil partnerships are crucial. As a result, these projects could reshape North-South supply chains and strengthen resilient Western critical minerals networks.
ScrapInsight Commentary
US engagement with Brazil signals a shift toward localized rare earth processing, potentially stabilizing global heavy rare earth supply. Scrap and secondary metal flows could indirectly benefit from expanded downstream facilities. Long-term, Brazil’s industrialization policies may enhance circular economy integration in strategic metals.
