Brazil Mandates Technology Transfer as US Rare Earth Investment Surges

The United States and Australia are rapidly increasing investments in Brazil's rare earth mineral sector to break China's global market dominance. This push is highlighted by USA Rare Earth's $2.8 billion acquisition of Serra Verde, Brazil's only commercial rare earth producer, supported by up to $1.6 billion from the U.S. Department of Commerce and the U.S. International Development Finance Corporation.

Data from the National Mining Agency reveals a surge in exploration, with 268 applications filed in the first half of 2026 alone. Foreign-backed firms filed 42% of these requests. However, the expansion has triggered environmental and social alarms, as 25% of applications overlap with or are near protected areas and Indigenous territories. In Goias, the Canadian firm Aclara Resources has faced scrutiny over claims overlapping with an Afro-Brazilian community.

In response, Luiz Inacio Lula da Silva announced that the Senate will advance legislation to establish a federal policy on critical minerals. The proposed law aims to prevent the simple export of raw resources by requiring foreign companies to transfer processing technology to Brazil. Lawmaker Zé Silva, the author of the pending legislation, noted that the policy is designed to ensure mineral transformation occurs domestically and to monitor foreign influence in the sector.