Lula's government presents new 'national sovereignty' policy on strategic minerals

The Brazilian government announced this week a new national policy focused on sovereignty over strategic minerals.

The measure, presented by President Luiz Inácio Lula da Silva, aims to strengthen the country's control over resources considered essential for economic development, energy transition and industrial security.

The topic is of great interest in the global market, as Brazil is one of the largest suppliers of critical minerals such as lithium, niobium, graphite and rare earths.

These inputs are at the heart of the production chains for batteries, electric vehicles, solar panels, and cutting-edge technologies.

What changes with the new policy

According to the official announcement, the national sovereignty policy on strategic minerals provides for a series of measures to ensure that the exploration, processing, and export of these resources serve Brazil's long-term interests.

The main guidelines include:

• Greater state control on areas of extraction and commercialization of critical minerals;
• Strategic partnerships with national and foreign companies that are committed to technology transfer;
• Incentives for internal industrialization, so that the minerals are processed in Brazil before export;
• Stricter environmental licensing rules and supervision of mining activities;
• Strengthening research and innovation in the area of mining and advanced metallurgy.

The government says the goal is not to restrict foreign investment, but rather to ensure that the country is not limited to being a supplier of raw materials, adding more value before selling its resources.

Why these minerals are strategic

Strategic minerals play an increasingly important role in the global economy.

Demand for lithium, for example, has grown rapidly due to the production of rechargeable batteries used in electric cars and energy storage systems.

Niobium, another mineral in which Brazil is a world leader, is used in high-strength metal alloys, essential for the aerospace industry, medical equipment, and infrastructure.

So-called “rare earths” are essential in the manufacture of powerful magnets, wind turbines, smartphone components and other technological devices.

With the energy transition and the digitalization of the economy, these inputs have become strategic not only for companies, but also for the national security of several countries.

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The international context

The policy announcement comes as several nations are reviewing their strategies to secure supplies of critical minerals.

The United States, the European Union, China, Canada, and Australia already have robust policies aimed at the exploration, storage, and trade of these inputs.

In recent years, geopolitical tensions and supply crises have shown how dependence on a few suppliers can affect entire industries.

The best-known case is that of China, which dominates the production and processing of rare earths, exerting great influence over the global market.

Brazil, with its vast reserves, emerges as a strategic player capable of diversifying global supply and, at the same time, benefiting economically.

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Economic potential for Brazil

According to data from the Ministry of Mines and Energy, the mineral sector represents around 4% of Brazil's GDP, but the growth potential is much greater if the country invests in the processing and industrialization of its minerals.

Studies indicate that processing minerals such as lithium domestically can increase the added value of exports by up to five times.

Furthermore, the development of industrial hubs focused on the production of batteries and electronic components can generate thousands of skilled jobs.

The new policy seeks precisely to attract companies and investors willing to establish factories and research centers in Brazil, creating a more robust economic cycle.

Market and expert reactions

Market reaction was mixed. Mining industry representatives emphasize the importance of regulatory predictability and urge that the changes not create excessive barriers to new projects.

On the other hand, experts in geopolitics and economic development praised the measure, arguing that it aligns Brazil with international trends and strengthens its position in global production chains.

The National Confederation of Industry (CNI) expressed support for the idea of adding value before export, but highlighted the need for adequate infrastructure and logistics to enable domestic processing.

Implementation challenges

Despite the opportunities, policy implementation faces some significant challenges:

1. Limited infrastructure in mining regions, hindering transportation and local industrialization;
2. Lack of skilled labor in advanced processing technologies;
3. Global competition for investments in mining and processing;
4. Need to balance economic development and environmental preservation;
5. Bureaucracy and slowness in licensing which may discourage investors.

The government promises to create an interministerial committee to monitor the implementation of the policy, coordinate with states and municipalities, and streamline processes without compromising environmental safety.

Environmental and social impacts

The mining sector is frequently criticized for its environmental impacts, such as deforestation, river contamination, and the risk of dam disasters.

In the new policy, the government included guidelines for:

• Adopt less polluting technologies in extraction and processing;
• Strengthen monitoring and punish environmental violations;
• Ensure consultation and participation of affected local communities;
• Encourage post-mining environmental recovery projects.

Furthermore, the aim is to invest in professional training and social infrastructure in mining regions, improving the quality of life of local populations.

Comparison with other countries

The Brazilian measure is comparable to policies adopted by countries such as:

• Chile: focus on state control of lithium and partnerships for battery production;
• Australia: encouragement of internal processing and export of higher value-added products;
• Canada: national strategy for critical minerals with strong support for research and innovation.

Like these countries, Brazil seeks to use its resources not only as a source of revenue, but as leverage to develop strategic industrial sectors.

Prospects for the future

If well executed, the policy could transform Brazil into a global hub for strategic minerals, attracting investment and strengthening its participation in the energy transition production chains.

However, success will depend on factors such as political stability, clear rules, investment in infrastructure, and the ability to form balanced international partnerships.

The challenge is to find the balance between national sovereignty, attracting foreign capital and environmental sustainability.

Looking ahead: a golden opportunity

Brazil faces a historic opportunity. With vast reserves and a favorable international landscape, the country can move beyond being solely an exporter of raw materials and establish itself as a leading supplier of clean and advanced technologies.

Certainly, the new policy of national sovereignty over strategic minerals is an important step in this direction.

It remains to monitor the implementation of the measures and verify whether they will truly transform Brazil's mineral potential into sustainable economic development.

Sources: https://www.cnnbrasil.com.br/politica/entrevista-lula-minerais-criticos/

https://investdefesa.org/2025/08/10/governo-planeja-nova-politica-de-soberania-nacional-para-minerais-estrategicos/