U.S. To Buy Critical Minerals From Brazil, Ambassador Says
Date
5/16/2024 6:26:35 AM
(MENAFN- The Rio Times) US Ambassador Elizabeth Bagley announced plans to buy critical minerals from Brazil in a May 15, 2024 interview with Folha de São Paulo.
The official announcement will occur at the G20 summit in November, focusing on investments in Brazil's mining sector.
The Brazilian Geological Survey (SGB) defines critical minerals as essential for economic and technological development but facing significant supply risks.
These minerals are crucial for producing technological equipment such as semiconductors, smartphones, solar panels, and electric vehicles.
Examples include lithium, nickel, cobalt, neodymium, dysprosium, niobium, and graphite.
Elizabeth Bagley explained that this agreement aligns with the US policy of "nearshoring," which sources from geographically close and allied countries.
The US has heavily invested in domestic semiconductor industries to reduce reliance on Chinese production.
In 2022, the US announced a $50 billion investment in the technology industry. In 2023, it imposed restrictions on US investments in Chinese technology firms.
Despite this, Bagley does not consider Brazil a candidate for semiconductor investments.
On May 14, US President Joe Biden announced increased tariffs on Chinese products.
The new tariffs include 100% on electric vehicles, 25% on lithium-ion batteries, 50% on solar panels, 25% on steel and aluminum, and 50% on semiconductors.
These critical minerals are essential for producing these goods.
U.S. to Buy Critical Minerals from Brazil, Ambassador Says
This deal highlights the strategic importance of diversifying supply chains and strengthening ties with key allies.
The focus on critical minerals underscores their role in advancing technology and clean energy solutions.
As global demand for these minerals increases, such partnerships become vital for economic and technological stability.
The upcoming G20 announcement will mark a significant step in US-Brazil relations and the broader effort to secure essential resources.
This agreement between the US and Brazil reflects the need for stable supply chains in critical industries.
The emphasis on critical minerals showcases their significance in the technological and clean energy sectors.
By securing these resources, the US aims to enhance its economic and technological resilience.
This partnership with Brazil highlights the broader strategy of nearshoring and reducing dependency on distant sources.
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