Brazil Advances Science and Innovation with Critical Minerals Policy and R$120 Million Research Funding

Brazil is making significant strides in strengthening its science and innovation sectors through recent government initiatives focused on critical minerals policy and substantial research funding programs. The Ministry of Science, Technology, and Innovation (MCTI) is actively promoting a national strategy to enhance Brazil's role in the global digital economy and energy transition.

The Brazilian government is advancing Project of Law 2,780/2024 in Congress, which seeks to establish a National Policy for Critical and Strategic Minerals (PNMCE). This legislation aims to foster research, industry, trade, and consumption of critical minerals, especially rare earth elements vital for technologies such as smartphones and electric vehicles. The policy includes creating a Committee for Critical and Strategic Minerals (CMCE) under the National Mineral Policy Council (CNPM) to guide sector development. Luiz Rodrigues from MCTI emphasized that while the proposed law's provision mandating a minimum investment of 0.4% of companies' gross revenue into research and innovation is positive, it falls short of what is needed for Brazil to develop high-value mineral processing capabilities. He cautioned that the proposal should not be seen as comprehensive but as a starting point for further initiatives to reduce dependence on foreign technologies and strengthen Brazil's productive chain. Currently, China dominates about 91% of the global rare earth refining market, underscoring the strategic opportunity for Brazil to expand its mineral processing.

In parallel, the National Council for Scientific and Technological Development (CNPq) has opened applications for its 2026 Institutional Capacity Building Program (PCI), which allocates R$120 million over four years to institutions linked to MCTI. The program operates on a project-based competition model, with proposals due by May 27, 2026. At least 30% of funding is reserved for projects in Brazil's Northern, Northeastern, or Central-Western regions, reflecting a commitment to regional scientific development. Each approved project may receive up to R$1.5 million, allowing flexibility in meeting institutional goals. This revamped PCI enhances opportunities for researchers at public companies, social organizations, and scientific institutions affiliated with MCTI, with scholarships receiving an average 30% adjustment and operational costs covered up to 10% of proposal budgets.

Together, these initiatives underscore Brazil's strategic focus on integrating scientific research, technological innovation, and industrial policy to secure greater sovereignty in critical mineral resources and foster nationwide research capacity. The MCTI expects ongoing dialogue following the new policy's approval to further align science and technology efforts with broader national development strategies.