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Brazil stands out in supply of critical minerals as US seeks to reduce dependence on China; expansion of mining is essential
If the Brazilian subsoil were a treasure chest, we would be about to pave the way for a greener energy future! The expansion of mining is the order of the day in the energy transition, and Brazil has all the critical minerals the world needs. Meanwhile, the US is looking for new reliable partners to reduce its dependence on China.
Brazil at the forefront of critical minerals
The global energy transition is directly linked to the expansion of mining, and Brazil is in a privileged position. The country has reserves of all the critical minerals needed for green technologies, such as electric car batteries (nickel, lithium and graphite), wind turbines (nickel, aluminum, copper and rare earths) and solar panels (aluminum, copper, polysilicon, silver and steel).
“We are able to supply all the critical minerals the world needs, without exception. We have at least one deposit of each of these minerals,” says Valdir Silveira, director of geology and mineral resources at the Brazilian Geological Survey (SGB).
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US seeks new partners, Brazil has great potential
The United States wants to lead the energy transition and is looking for reliable suppliers to reduce dependence on China and countries considered less stable. “Without external partners, they [the US] will not be able to meet domestic demand,” says Fabrizio Panzini, director of public policy and government relations at Amcham.
In July, Geoffrey Pyatt, US Assistant Secretary of State for Energy Resources, was in Brazil to “accelerate cooperation with Brazil across the full range of energy transition inputs“. Pyatt emphasized the importance of partnership in strategic minerals and stated: “We see Brazil positioned to continue to truly play a global leadership role.”
Investments and opportunities
To take advantage of this opportunity, Brazil needs to invest in infrastructure and research to not only be a supplier of raw materials, but also to process minerals and even manufacture high value-added goods.
“This issue of critical minerals took on a new dimension with the discussion of the energy transition in the post-pandemic period,” says Abrão Neto, CEO of Amcham Brazil. According to him, the partnership with the US could be a “win-win” relationship, bringing gains to the extractive and processing industry in Brazil.
Ministry of Mines and Energy reported that Brazil and the US have “different circumstances”
Brazil and the United States have a history of more than three decades of talks on energy security, but no new formal agreements have been signed in recent years. Recently, two new partnership agreements for clean energy generation were signed by ministers from both countries.
The Ministry of Mines and Energy reported that Brazil and the US have “different circumstances”, but have been working together to unlock financing that will drive the energy transition.
The expansion of mining in Brazil is essential to meet global demand for critical minerals in the energy transition. With the US seeking to reduce its dependence on China, Brazil has the opportunity to consolidate itself as a strategic partner, as long as it can invest and develop the entire production chain.
The question remains: are we ready to assume this global leadership role or does Brazil still need to overcome internal barriers to take full advantage of its potential in the energy transition?
