Lula says China could partner with Brazil on critical minerals
Brazilian President Luiz Inacio Lula da Silva has identified China and the United States as possible partners in developing Brazil’s critical-minerals industry. Speaking before a closely fought election, Lula said Brazil should process more ore domestically, while rival Flavio Bolsonaro has presented the country as an alternative to China for Western supplies.
Brazilian President Luiz Inacio Lula da Silva has said China could partner with Brazil in developing its critical-minerals industry, while insisting that the country should process more of its resources domestically. Lula made the comments during an interview with the Flow podcast on Thursday, three days before a closely fought election. Asked whether China could participate in his plans, he said Beijing could bring technology to Brazil, alongside the United States.
“We want to transform them here in Brazil,” Lula said of the minerals. He also told listeners that US President Donald Trump had to look after the United States while he would look after Brazil. Brazil has the world’s second-largest rare-earth reserves after China, according to the supplied material.
Washington and Beijing are seeking supplies outside Chinese control. Lula’s main rival, Senator Flavio Bolsonaro, has courted the Trump administration and described Brazil as the “only real alternative to China for the free world” in rare earths. Bolsonaro met Trump at the White House in May and promised a long-term strategic partnership involving shared re-industrialisation.
Companies from both countries already operate in Brazil’s Goias state. Chinese miner CMOC acquired Anglo American’s niobium operations there in 2016, while US company USA Rare Earth agreed in April to buy Serra Verde, also in Goias, for about US$2.8 billion. Lula signed a law in September creating a presidential council to guide the sector.
The council will review foreign stakes in strategic projects and provide tax credits for processing through 2034. He said Brazil should also develop electric batteries, chips and phones rather than depend on Chinese imports. Lula cited Chinese investment, including electric-vehicle maker BYD’s plant in Bahia, alongside German and American investment.
The president also referred to Brazil’s trade dispute with the United States, which imposed a 25 per cent tariff on some Brazilian goods in July. Official data showed exports to the US fell 9.7 per cent in the first eight months, while shipments to China rose 15 per cent.
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