US Admits Defeat in China Minerals Race; Brazil Eyes Processing Power

Brazilian Mines and Energy Minister Alexandre Silveira revealed that U.S. President Donald Trump and his administration acknowledged losing the critical minerals race to China during talks in May. Silveira made this disclosure in an unscripted speech at the Exposibram industry conference in Minas Gerais, a state responsible for over 40% of Brazil's mineral output.

Despite the U.S. pouring billions of dollars into Brazilian mines, Silveira asserted that Brazil will not remain a mere exporter of raw materials. "I spent an hour with President Trump and his team, the vice-president, some ministers, and I heard that they lost the race to China on electrification, on the separation of minerals, on the defence industry," Silveira stated. He defended the government's strategy to attract foreign investment in mineral processing within Brazil.

Silveira was part of the delegation accompanying Brazilian President Luiz Inacio Lula da Silva to Washington on May 7, marking Lula's first visit since Trump returned to office. The discussions between the two leaders and their teams covered trade, tariffs, organized crime, and critical minerals, extending significantly beyond their scheduled time.

Brazil possesses the world's second-largest reserves of rare earth elements. However, China currently controls approximately 91% of global rare earth separation and refining processes, as well as 94% of permanent magnet production, according to the International Energy Agency. This dominance highlights Brazil's strategic opportunity to move up the value chain in mineral processing.

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I spent an hour with President Trump and his team, the vice-president, some ministers, and I heard that they lost the race to China on electrification, on the separation of minerals, on the defence industry.