The United States is pressing Brazil to sign a critical minerals agreement to reduce dependence on China, but Brazil is resisting. The South American nation, which holds between 19 and 23 percent of global rare earths reserves, wants to maintain control over its resources and diversify its trading partners. Serra Verde Mining in Goiás state is one of Brazil's few active rare earths operations.

U.S. officials sent a proposal for a bilateral agreement in February but have received no response. The U.S. embassy has identified at least 50 potential projects and wants to invest billions in Brazilian critical minerals. However, Brazil's government was notably absent from a major U.S.-hosted critical minerals forum in São Paulo, signaling its reluctance to commit to an exclusive arrangement with Washington.

Brazil's hesitation stems from its desire to process minerals domestically and maintain relationships with China, the European Union, and India. President Lula da Silva has publicly stated that Brazil won't simply turn over its resources to foreign companies, referencing past exploitation of its natural wealth. The impasse reflects broader tensions as both nations seek to reduce reliance on China while Brazil prioritizes sovereignty and diversified trade relationships over a U.S.-centric minerals strategy.