Brazilian Lawmaker Proposes Bill for State-Run Company on Rare Earths and Critical Minerals

A Brazilian lawmaker has proposed a bill to create a state-run company focused on rare earths and critical minerals. The company would be tasked with exploration, extraction, processing, and commercialization of these materials. Rare earths and critical minerals are vital for electronics, renewable energy technologies, and defense applications.

The bill, presented to Brazil's Chamber of Deputies, seeks to address Brazil's reliance on imports for these strategic resources. According to @business, the proposal highlights Brazil's significant untapped reserves of rare earths. This initiative follows global efforts to diversify supply chains amid tensions in international trade.

holds substantial deposits of rare earth elements, including neodymium and praseodymium, used in electric vehicle batteries and wind turbines.

Critical minerals under the bill also encompass lithium, cobalt, and graphite. The state-run entity would operate under the Ministry of Mines and Energy, similar to existing companies like Petrobras for oil. The proposal comes amid increasing global demand for these minerals, driven by the transition to clean energy.

Brazil's government has identified critical minerals as a priority for economic development and national security. Lawmakers argue that a dedicated company could enhance Brazil's position in the global market.

If approved, the company would require initial funding from the federal budget. Stakeholders include mining firms, environmental groups, and international partners. The bill must pass committee reviews and a full vote in the Chamber before moving to the Senate. Opposition may arise over environmental impacts of mining and state involvement in the sector.

Brazil's constitution allows for public enterprises in strategic areas, providing a legal basis for the proposal. Further details on the bill's text are available through official congressional records.