US Hosts Critical Minerals Conference in Brazil Amid Tensions in US-Brazil Diplomatic Relations

On Wednesday, the U.S. ambassador will host an event in São Paulo to connect American investors with Brazilian companies seeking to produce critical minerals. Currently, tense U.S.-Brazil diplomatic relations may cast a shadow over negotiations aimed at strengthening supply chains in the Western Hemisphere.

The U.S. is actively seeking to secure reserves of critical minerals, especially rare earth elements, which are currently dominated by Chinese companies.

Citigroup and Glencore are expected to attend, along with representatives from some Brazilian state governments.

Last week, Brazilian officials withdrew from the U.S.-Brazil Critical Minerals Forum. A U.S. spokesperson said this is Washington’s first critical minerals event in Latin America this year.

The deterioration in bilateral relations stems from a far-right U.S. official’s request to visit former President Jair Bolsonaro in prison, which the Brazilian government viewed as interference in internal affairs. Brazil denied the official entry, citing “fictitious reasons for the visit.”

Brazilian officials also privately expressed dissatisfaction with Wednesday’s signing of a critical minerals agreement between the U.S. and Goiás Governor Ronaldo Caiado. Caiado is a political opponent of leftist President Lula da Silva. An informed Brazilian official said this move was seen as the U.S. trying to bypass the federal government.

This perceived insult has heightened doubts about how long the recent warming of U.S.-Brazil relations can last. Brazil’s October elections are highly competitive and imminent.

Last September, Lula briefly met with U.S. President Donald Trump at the United Nations, with Trump describing their meeting as instant rapport. However, as Washington’s focus shifted to the Middle East conflict, Lula’s planned visit to the White House this month was canceled.

A U.S. spokesperson said Washington still hopes to sign broader agreements with the Brazilian government and emphasized shared interests in jointly developing Brazil’s mineral processing capacity.

An anonymous official from Brazil’s Ministry of Development, Industry, and Foreign Trade revealed that developing the domestic mineral processing industry is a priority for Lula’s government.

U.S. officials believe that related investments could reach billions of dollars, with over 50 mining projects already identified in Brazil, potentially helping diversify global supply chains and reduce China’s dominance in critical minerals.

One participant said the event on Wednesday, hosted by the American Chamber of Commerce in São Paulo, is expected to attract over 100 companies and several state government representatives. Organizers encourage local mining companies to pitch projects to U.S. investors.