Brazil Prioritizes Rare Earths Among 27 Critical Minerals, Targets R$2 Billion Guarantee Fund and Tighter Investment Oversight

Highlights

• Brazil classified rare earths, lithium, graphite, copper and five other substances in its highest-priority mineral category under Decree No. 13,146/2026.
• A proposed guarantee fund could receive up to R$2 billion, with processing incentives capped at R$1 billion annually from 2030 to 2034, though neither represents immediately available project financing.
• Investment-screening regulations could complicate foreign acquisitions, mining-title transfers and international offtake agreements, raising political risk for investors.
• Niobium was ranked Class III despite Brazil dominating global supply, revealing that the policy prioritizes strategic exposure over geological value or investment returns.
• Commercial success for rare earth projects still depends on NdPr/Dy/Tb recoveries, reagent costs, environmental approvals and qualified oxide production—not government priority status alone.