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The United States has signed a memorandum of understanding with the Brazilian state of Goiás to develop supply chains for rare earth minerals, essential components for high-tech industries.
Despite rising diplomatic friction between Washington and Brasília, U.S. officials confirmed on Wednesday that $600 million has already been invested in projects across Goiás and Piauí.
The initiative aims to tap into Brazil’s vast reserves—the second largest in the world—which are critical for producing everything from electric vehicles and smartphones to advanced military hardware.
This strategic push comes as the U.S. seeks to diversify its mineral sources and reduce its reliance on China.
While high-level representatives from the National Security Council attended a minerals forum in São Paulo to promote these partnerships, the Brazilian federal government was notably absent.
Although President Luiz Inácio Lula da Silva’s administration has engaged in preliminary talks with Washington, it recently opted to sign a cooperation agreement on critical minerals with India instead.
The relationship between the two nations has been further strained by a recent diplomatic spat.
Last week, President Lula barred a U.S. State Department official from entering Brazil, citing concerns over potential political interference.
The official had planned to meet with jailed former president Jair Bolsonaro, a close ally of Donald Trump.
As Lula prepares for a re-election campaign against Bolsonaro’s son, Flavio, the struggle for control over Brazil’s mineral wealth has become deeply entangled with both domestic politics and global trade rivalries.
