A frantic race has begun between China and the US for Brazil’s rare earths. And Brazil only asks for one thing in return.
After a diplomatic incident with Japan, China abruptly reduced its exports of rare earths, causing an immediate shock in industries around the world that depended on these materials to manufacture everything from magnets to advanced electronics. For weeks, companies and governments discovered the extent to which a seemingly invisible resource could become a lever of global power. A global race that is decided far from Washington and Beijing. This push for critical minerals has entered a new phase, with Brazil now converted on the board where the interests of the United States and China intersect. The reason? They both search ensure access to key rare earths for technology, defense and energy transition, but this time they are not negotiating on equal terms. Brazil, with one of the largest reserves in the world, has made it clear tons of common sense: that it does not want to repeat the historical role of simple exporter of raw materials, and is using that position to redefine the rules of the game. The US accelerates, but Brazil slows down. Washington has intensified its offensive with multi-million dollar investment proposalsbilateral agreements and formulas to guarantee direct supply to US companies. It has even started to secure rights on production through financing, trying to close the path to China in a supply chain that it considers strategic. However, this approach has been perceived in Brazil like too aggressivewhich has generated political resistance and has stopped agreements that, on paper, would benefit both parties. China is still in the game. Meanwhile, China has not disappeared from the board, but quite the opposite: is still the main global player in the processing of rare earths and maintains active commercial relations with Brazil. Exports to the Asian giant have grownand its industrial experience remains difficult to match in the short term. This puts Brazil in a unique position, where it can negotiate simultaneously with multiple powers without being forced to choose, at least for now. The Brazilian condition. This is where Brazil introduces its strategic turn: opening the door to foreign capital, there is no problem with that, but with a clear and unusual condition in this type of agreement. It is not enough to extract resources, but any partner must contribute to local technological development, processing within the country and job creation. In other words, Brazil demands to transform its mineral wealth in own industrial capacitybreaking with decades of dependence in which it exported raw materials and imported finished products. From exporter to industrial power. This change of focus is translating in concrete proposalssuch as the possible creation of a state company to manage critical minerals or a battery of laws aimed at strengthening national control over the sector. The idea is clear: go from selling resources to build the entire chain of value within the country, from extraction to manufacturing of key components. There is no doubt that it will not be a quick or easy process, but it marks an ambition that goes far beyond a simple commercial agreement. The real pulse: who accepts Brazil’s rules. In essence, the competition between the United States and China for Brazilian rare earths is no longer fought only in terms of investment or access, but in who is willing to accept the conditions that third parties imposein this case Brazil. Because the country is not saying “no” to anyone, but something more uncomfortable for the great powers: “yes, but on our terms.” And that introduces a new element in the geopolitics of resources, one where control no longer depends only on who needs the minerals and has the money, but on who has the capacity (and the will) to impose the rules of the game. For Brazil, a master move. Image | NZ Defense Force, YouTube In Xataka | China has just discovered the largest deposit of rare earths in the world. And he did it just when he needed it most. In Xataka | The world’s rare earth reserves, laid out in this graph showing the brutal dominance of a single country
