U.S. Signs Mineral Deals With Brazilian States Amid Federal Friction

The United States is pursuing critical mineral agreements with Brazil to reduce supply chain reliance on China, employing a dual-track strategy of federal proposals and direct state-level partnerships. U.S. Charge d'Affaires Gabriel Escobar confirmed that Washington has proposed a federal-level deal to President Luiz Inácio Lula da Silva, but the agreement remains pending.

To bypass federal delays, the U.S. signed a cooperation agreement with Governor Ronaldo Caiado of Goias state to map mineral potential and improve rare earth processing. A similar agreement regarding lithium reserves is expected with the state of Minas Gerais. The Brazilian federal government has expressed frustration, viewing these state-level deals as attempts to circumvent national authority.

Diplomatic tensions have intensified due to a clerical error in a proposed memorandum of understanding and a U.S. official's request to visit imprisoned former President Jair Bolsonaro. These frictions contributed to the postponement of a planned meeting in Washington between President Donald Trump and President Lula.