Brazil's lower house approves critical minerals regulatory framework
Primary region South America
Tags Trade · Economy · Policy · Energy
Regions South America
Brazil's Chamber of Deputies approved Bill PL No. 2,780/2024 on May 6, establishing the National Policy on Critical and Strategic Minerals (PNMCE), one day before Lula's White House meeting with Trump. The bill creates a National Council for the Industrialization of Critical and Strategic Minerals with authority to veto international partnerships deemed risky to Brazil's economic or geopolitical security. It provides R$5 billion ($1 billion) in tax credits between 2030 and 2034 and establishes a Mineral Activity Guarantee Fund of up to R$2 billion. The legislation covers lithium, cobalt, niobium, graphite, and rare earths. Brazil holds the world's second-largest reserves of these inputs. The bill prioritizes domestic refining and national sovereignty, aiming to prevent Brazil from remaining a commodity exporter. It now moves to the Federal Senate.
Strategic interpretation
The timing of the bill's passage immediately before Lula's Trump meeting was deliberate, giving Lula a domestic legislative achievement to bring to the negotiating table. The veto-power council signals Brazil's intent to maintain sovereign control over its critical mineral resources amid US-China competition for supply chains. This positions Brazil as a pivotal swing player in the global critical minerals race.