Brazil Launches New Strategic Policy for Critical Mineral Industrialization and Foreign Investment
The government prioritizes local value-added processing for 27 critical minerals to boost industrial development.
1New Strategic Policy Framework
Brazil has officially launched its National Policy for Critical and Strategic Minerals, establishing a council to oversee the sector. During the November 5, 2026 meeting, officials approved a priority list of 27 minerals. The policy aims to shift Brazil from a raw material exporter to a hub for industrial processing.
2Prioritization of Mineral Assets
The 27 minerals are categorized into three tiers based on geopolitical risk, supply concentration, and domestic dependency. High-priority items include lithium, nickel, graphite, and rare earths, which are essential for electric vehicle batteries and energy storage. These classifications will guide future public resource allocation and industrial development incentives for companies.
3Industrialization as a Requirement
The government mandates that foreign investment must contribute to local industrialization, citing Indonesia and Malaysia as successful models. Authorities may require companies to establish domestic refineries, potentially impacting projects like the Australian firm Lynas in Poços de Caldas. The goal is to retain value-added manufacturing within Brazilian territory instead of exporting.
4State Oversight and Screening
A new screening mechanism will evaluate foreign investments and corporate control transfers. While the specific criteria and value thresholds remain undefined, officials plan to study Australian and Canadian models. The government intends to focus scrutiny on investments from entities linked to or influenced by foreign states to protect national sovereignty.
5Openness to Global Partners
Despite pressure from the United States to restrict certain foreign capital, Brazil maintains an open-door policy for global partners. Ministers confirmed interest in collaborating with investors from China, the US, the UK, and Russia. The primary condition for participation is the development of local science, technology, and employment opportunities.
6Economic and Legal Stability
President Lula emphasized that attracting foreign capital requires fiscal responsibility and a stable economic environment. The government aims to provide legal security through the new council, which serves as an entry point for investors. Private sector representatives have requested predictable rules, noting the high-risk, long-term nature of these mining projects.
7Financial Incentives and Goals
The national policy, sanctioned on September 16, includes up to 7 billion Brazilian reais in incentives for processing and transformation projects. By fostering this new industry, the government seeks to leverage its significant global reserves, including the second-largest graphite and third-largest nickel deposits, to create jobs for 129,000 workers.
8Future Policy Implementation
The council will hold its second meeting in late November to finalize screening criteria and operational details. As the government balances state oversight with the need for foreign capital, the success of this strategy depends on maintaining a clear, stable regulatory environment that encourages long-term industrial investment within the country.