US Eyes Rare Earth Partnership with Brazil Amid Supply Chain Diversification Push

Published: Jan 21, 2026 16:54

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[SMM News: US Considers Collaborating with Brazil on Rare Earth Development] The US is considering establishing a rare earth partnership with Brazil to reduce reliance on a single supply chain. Representatives from both governments, industry organizations, and financial institutions have held preliminary talks to discuss potential cooperation on critical minerals. Brazil holds the world's second-largest rare earth reserves, but its development progress has long been constrained by regulatory hurdles and insufficient investment. To boost resource development, Brazil recently established a National Mining Policy Committee and received $465 million in financing from the US to support local enterprises in expanding production. Analysts point out that the US aims to mitigate supply chain risks through diversification, having previously engaged in similar cooperation with countries such as Australia and the DRC. However, the US must contend with competition from the EU. The President of the European Commission recently confirmed ongoing discussions with Brazil regarding critical raw material cooperation. Additionally, political relations between the two countries may be influenced by historical factors, but analysts believe that as tensions ease, the prospects for cooperation will become clearer. Industry insiders expect the US and Brazil to reach a key minerals agreement in the near term, further driving the restructuring of the global rare earth supply chain.

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