U.S. Secures Exclusive Brazilian Rare Earth Production Through 2030

The United States government secured a deal to purchase all rare earth mineral production from a Brazilian mine through 2030, preempting a similar effort by the European Union. This agreement follows the formal reopening of critical minerals dialogues in Washington between officials from the U.S. Commerce Department and Brazil's Ministry of Mines and Energy to diversify supply chains away from China.

To support these efforts, the U.S. International Development Finance Corporation agreed in early November to provide up to $465 million in funding to the Brazilian producer Serra Verde for its Pela Ema mine in Goiás state. These negotiations, initiated in September by Presidents Donald Trump and Luiz Inácio Lula da Silva, focused on joint ventures to increase Brazil's extraction and processing capacities. Brazil, which holds the world's second-largest proven reserves, is using the surge in U.S. interest to advance national legislation organizing its critical mineral production.

European Commissioner for Industry Stephane Sejourne revealed the U.S. finalized the agreement just days before his scheduled talks in Brazil. In response to these supply chain vulnerabilities, the European Commission announced a $3.5 billion investment in the extraction, refining, and recycling of critical minerals and plans to establish a European Center for Critical Raw Materials next year.