US Diplomat Engages with Brazilian Mining Firms to Bolster Rare Earth Mineral Supply Chains
US diplomat Gabriel Escobar meets with Brazilian mining companies to discuss rare earth mineral agreements following high-level US-Brazil talks, aiming to reduce China's supply dominance.
- • US chargé d'affaires Gabriel Escobar holds productive meetings with Brazilian mining firms on rare earth minerals supply.
- • Talks follow recent presidential meeting between Donald Trump and Luiz Inácio Lula da Silva.
- • China dominates global rare earth mining (60%), refining (91%), and permanent magnet production (94%), posing geopolitical risks.
- • Brazil has second-largest rare earth reserves but limited production/refining capacity, attracting Western investments.
Key details
Gabriel Escobar, the U.S. chargé d'affaires in Brazil, has been engaging with Brazilian mining companies in a series of meetings aimed at securing agreements on the supply of critical and strategic minerals, particularly rare earth elements. These discussions come shortly after a meeting between Presidents Donald Trump and Luiz Inácio Lula da Silva, underscoring the growing geopolitical importance of these materials amid global supply challenges and China's dominant position in the rare earth market.
Escobar described the meetings as "productive," although the specific companies involved were not disclosed. The talks coincide with Exposibram, one of Latin America’s largest mining sector events, bringing together major companies, government representatives, and political leaders. This timing highlights the strategic effort to explore collaborations to counter China's near-monopoly — China controls approximately 60% of global rare earth mining, 91% of refining, and 94% of permanent magnet production used in advanced technologies.
The International Energy Agency (IEA) considers this concentration a significant geopolitical risk, especially for the United States, where military and technological supremacy depend heavily on secure access to these materials. As a country holding the world's second-largest reserves of rare earth elements, Brazil presents a critical opportunity. However, it currently lacks a mature production and refining infrastructure, as well as specific regulatory frameworks for the sector. Western firms have begun investing in exploration and projects in Brazil, signaling the country's emerging role in this global strategic supply chain.
These engagements represent Washington’s efforts to diversify sources beyond China and collaborate with Brazil to ensure stable, reliable rare earth supplies vital for defense, clean energy, and cutting-edge technologies.