Two Brazilian states, Goias and Minas Gerais, known for their abundant reserves of rare earths and lithium, are on the verge of finalizing critical minerals cooperation agreements with the U.S.
Ronaldo Caiado, the governor of Goias, signed a preliminary agreement on Wednesday to collaborate with the U.S. on the development of the state’s rare earth reserves.
A similar agreement concerning lithium and other critical minerals is expected to be signed by Minas Gerais on Thursday, Argus Media reported on Wednesday.
Although the agreement signed by Goiás is not yet legally binding, it is intended to foster collaboration in research and technical skill development. “This partnership will help us better map and unlock our mineral potential,” Caiado said after the signing. “It also enables us to upgrade our technology and move beyond being just a raw mineral exporter.”
White House did not immediately respond to Benzinga’s request for comments.
US-Brazil Diplomatic Shift
After strained relations over high tariffs on Brazil, there was a thaw in ties. In October, Lula expressed confidence that the deal would be finalized “faster than anyone thinks” after assurances from President Donald Trump. However, there hasn’t been any development on that front.
U.S. spokesperson Gabriel Escobar said on Wednesday that the U.S. had formally proposed a critical minerals agreement to Brazil’s President Luiz Inacio Lula da Silva and was awaiting a response.
In December, the Trump administration lifted sanctions on Brazilian Supreme Court Justice Alexandre de Moraes, who had overseen the case that resulted in the conviction and jailing of former President Jair Bolsonaro for trying to overturn the 2022 election results. This indicated warming diplomatic ties between the two nations.
Critical Mineral Push
As for critical minerals, in February, the U.S. launched a $12 billion strategic critical minerals stockpile, called Project Vault, a public-private project. The move highlights that these minerals are now key to national security and advanced technology, while signaling that governments are actively managing supply‑chain risks through investment, pricing, and stockpiling.
Other South American nations, Chile, Argentina, Ecuador, and Peru, have all signed bilateral agreements with the U.S. regarding their lithium and copper resources.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.
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