Brazil sets investment priorities for critical minerals

The National Council for the Industrialization of Critical and Strategic Minerals met on Thursday (Nov. 5) to approve the Brazilian government’s priority list of critical and strategic minerals. The list includes 27 minerals, classified into three priority levels – high, medium, and low – which will guide the allocation of public policy measures and development resources.

The classification was based on five criteria: (i) the geopolitical risk associated with the mineral; (ii) the concentration of its supply; (iii) the potential for substitution with other materials; (iv) Brazil’s position in the production chain, with minerals requiring greater domestic capacity development assigned higher priority; and (v) the country’s degree of dependence on foreign suppliers.

The law establishing the National Policy on Critical and Strategic Minerals was signed on September 16, following its approval by Congress. The legislation provides for investments of up to BRL 7 billion in the form of incentives for mineral processing and transformation projects. The allocation of these resources must be guided by the priorities set out in the list approved at the meeting.

The goal is to develop a new domestic industry capable of processing these minerals and transforming them into finished products, such as electric vehicle batteries, thereby moving Brazil beyond its traditional role as an exporter of raw materials. Among the minerals identified as high priorities, Brazil holds, for example, the world’s second-largest graphite reserves, the third-largest nickel reserves, and the fourth-largest manganese reserves. The country aims to attract greater investment in developing the value chains associated with these minerals.

“For a long time, we have exported this wealth in its raw form and imported finished products, with the added value generated abroad. We want to break this cycle and establish a development strategy here in Brazil,” said Márcio Elias Rosa, Minister of Development, Industry, Trade, and Services.

President Luiz Inácio Lula da Silva, who attended the council meeting, underscored the importance of developing Brazil’s minerals industry. In this regard, he advocated for partnerships with other countries.

“We do not want the state to be the sole authority responsible for exploration, processing, and industrialization. We want to build partnerships; we need to learn and collaborate with other countries that are willing to join us in developing and harnessing this wealth.”

List

The list approved by the National Council for the Industrialization of Critical and Strategic Minerals comprises 27 minerals, ranked according to investment priority. However, it is not definitive, and additional minerals may be included based on the criteria used to establish the original list.

High-priority minerals

• Rare earth elements
• Graphite
• Lithium
• Nickel
• Cobalt
• Copper
• Manganese
• Silicon
• Uranium

Medium-priority minerals

• Tungsten
• Chromium
• Vanadium
• Tantalum
• Titanium
• Phosphate
• Potassium
• Sulfur

Low-priority minerals

• Niobium
• Tin
• Iron
• Zinc
• Gold
• Magnesium
• Molybdenum
• Thorium
• Aluminum
• Platinum-group metals