Brazil Critical Minerals Fund Attracts $85 Billion in Proposals

Brazil Critical Minerals

High investor interest spans lithium, rare earths, copper, and graphite across 23 Brazilian states

$5B fund aims to drive energy transition and scale-up Brazil’s strategic minerals

The new Brazil critical minerals fund, valued at $5 billion, has sparked major investment interest, receiving 124 proposals totaling over $85 billion. Launched amid rising global trade barriers and U.S. tariffs on critical minerals, the fund is designed to boost Brazil’s domestic mining, R&D, and downstream innovation.

Lithium and rare earths lead proposal volume across a wide mineral spectrum

Proposals submitted between 7 January and 30 April came from across 23 of Brazil’s 26 states and cover over 40 different minerals. Notably, the fund received 27 proposals for rare earths, 25 for lithium, 24 for copper, and 20 for graphite. Each submission required a detailed plan for research, development, and industrial innovation to support energy transition and decarbonization goals.

The Brazil critical minerals fund encourages local transformation of raw materials into energy-related products. This initiative could significantly expand Brazil’s role in the global critical mineral supply chain, especially in the face of U.S.-China resource tensions and shifting ESG standards.

Brazil positions itself as a global mineral powerhouse

BNDES, the state development bank administering the program with FINEP, highlights Brazil’s global resource base: the world’s largest niobium reserves and production, second-largest natural graphite reserves, and top-five positions in lithium, nickel, rare earths, and silicon. Eligible minerals for funding include aluminum, cobalt, manganese, molybdenum, titanium, tungsten, and uranium, among others.

Approved projects will receive tailored financial support—including loans, equity investments, grants, and subsidies—based on a two-stage evaluation. Although only a portion of proposals will be funded, the scale of demand underscores the region’s potential as a critical mineral hub.

The Metalnomist Commentary

The Brazil critical minerals fund reflects Latin America’s growing assertiveness in global supply chains. As Western countries scramble for non-Chinese resources, Brazil’s broad resource portfolio and downstream ambitions make it a pivotal player in the energy transition economy.