Brazil's lower house approves critical minerals bill
Updated
Updated · Bloomberg · May 7
Brazil's lower house approves critical minerals bill
10 articles · Updated · Bloomberg · May 7
Lawmakers passed the measure 343-97 on Wednesday night as President Luiz Inacio Lula da Silva prepared to meet Donald Trump.
The bill would regulate exploration of critical and strategic minerals, offer tax incentives for domestic processing and create a guarantee fund to expand credit for mining projects.
The proposal is a step toward tapping Brazil's vast mineral reserves, but it still requires Senate approval before becoming law.
How will Brazil's government balance attracting foreign capital with its power to veto deals and restrict exports?
Can Brazil's new mineral strategy break China's supply chain dominance without alienating Western investors?
In May 2026, Brazil's Chamber of Deputies approved a landmark bill establishing the National Policy on Critical and Strategic Minerals, aiming to transform the country into a global leader in clean energy supply chains. The policy mandates private companies to invest in research and a government-backed fund, while creating financial incentives and oversight bodies to promote domestic processing and innovation. However, environmental and Indigenous rights groups warn the bill risks deepening extractivism and social conflicts. Amid rising US-China rivalry and political volatility, Brazil seeks to balance international partnerships and safeguard sovereignty. Success depends on overcoming regulatory challenges and ensuring sustainable, inclusive development.