(MENAFN- The Rio Times) Brazil is sitting on some of the world's richest untapped reserves of critical minerals - from lithium and nickel to rare earths used in wind turbines, electric vehicles, and defense technology.

The country could become a major supplier in the global energy transition. Yet as others move quickly, Brazil's ambitions risk stalling in bureaucracy, outdated policy, and industrial underdevelopment.

Studies suggest that refining and processing its own minerals could add about R$243 billion ($45 billion) to Brazil's GDP by 2050. The global demand for minerals that power clean energy is expected to quadruple by mid-century.

But while Canada and Australia are already building advanced refining hubs, Brazil is still debating which minerals it considers“critical” and how to regulate them.

Its National Council for Mineral Policy was only created in October, and a key bill defining the national strategy remains stuck in Congress.



Despite holding the world's second-largest reserves of rare earths after China, Brazil exports almost all its output in raw form - mainly to China. Local refining technology is still years away.
Brazil's rare-earth ambitions hinge on rules and investment
A prototype under development by the Minas Gerais industry federation's rare-earth laboratory is not expected until 2028. Creating a domestic industry would require billions of dollars in investment, long-term incentives, and technical know-how that Brazil has yet to secure.

Foreign investors, however, are taking notice. The U.S. International Development Finance Corporation recently approved a $465 million loan to a rare-earth project in Goiás, one of several ventures exploring lithium, niobium, graphite, and nickel.

The Brazilian Mining Institute estimates total investments of $18 billion by 2029, though each large-scale project may take up to a decade to mature.

For Brazil, the challenge is not geological but political and structural. Building an integrated value chain demands consistent rules, faster licensing, and stable fiscal policy - areas often weakened by ideological swings and bureaucratic inertia.

Without these, Brazil risks remaining a raw-material supplier while others capture the higher-value stages of the green-energy economy.

If the country can align its resources with a clear industrial vision, it could become a new pillar in the global minerals map - but the window for leadership is closing fast.

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