Up to US$1.4 billion is set to support domestic processing of critical raw materials
Brazil’s Senate on Wednesday approved a bill that could give the country its first comprehensive national policy for critical minerals. The proposal, which still requires the approval of President Luiz Inácio Lula da Silva, establishes a concrete financing and industrial policy framework for the sector. Among other measures, it provides for a state-backed guarantee fund as well as additional funding for projects involving the processing and further refining of critical minerals. Companies will also be required to step up investment in research, development and technological innovation. A new national council is set to coordinate industrial policy and select projects eligible for support. The aim is to retain more value creation within Brazil and strengthen the country’s position in downstream stages of critical mineral supply chains.
Latin America’s largest country holds, for example, the world’s second-largest reserves of rare earths, but so far plays only a minor role in global production. Last year, President Lula stressed that Brazil should benefit more from its mineral wealth and that investors would need to contribute to expanding domestic industrial value creation. In recent years, Brazil has attracted growing interest from other countries that see its mineral resources as an opportunity to reduce their dependence on China, the dominant player in many critical raw material supply chains.
Photo: diegograndi via Canva
