The U.S. embassy will sponsor an event in São Paulo that brings together U.S. investors and Brazilian firms aiming to produce critical minerals, a sector seen as strategic for diversifying global supply chains. The meeting, scheduled for Wednesday, takes place against a backdrop of diplomatic tensions that could complicate efforts to strengthen Western Hemisphere mineral supply lines.
U.S. interest in securing access to critical mineral reserves - and rare earths in particular - has intensified as much of the processing and supply chain remains dominated by Chinese firms. The São Paulo gathering is intended to facilitate direct engagement between potential U.S. financiers and Brazilian project developers.
Citi and Anglo American are expected to attend the event, along with representatives from several Brazilian state governments. According to participants, more than 100 companies and a number of state government representatives are due to participate in the session at the American Chamber of Commerce in São Paulo, where local miners have been encouraged to present opportunities to U.S. investors.
Diplomatic friction has complicated the lead-up to the São Paulo meeting. Officials from Brasilia withdrew from the Brazil - U.S. Forum on Critical Minerals last week, a gathering the U.S. embassy spokesperson described as Washington's first event on critical minerals in Latin America this year. The pullout followed a separate incident in which relations soured after a far-right U.S. official sought to visit former President Jair Bolsonaro in prison. Brasilia perceived the request as an attempt to interfere in its domestic affairs and barred the envoy's entry, citing "falsification" of the reasons for the visit.
Brazilian officials also privately expressed frustration at the U.S. decision to sign, on Wednesday, an agreement on critical minerals with Goias state Governor Ronaldo Caiado. Caiado is a political opponent of President Luiz Inacio Lula da Silva, and the move was viewed by at least one Brazilian official following the matter as an attempt to circumvent the federal government. That perceived slight has contributed to doubts about how long a recent thaw in U.S.-Brazil relations can persist ahead of what is expected to be a tightly contested Brazilian election in October.
Despite the strains, U.S. officials have signaled they still hope to negotiate a broader accord with Brasilia. A U.S. spokesperson emphasized a shared interest in partnering to develop Brazil's processing capacity. Building domestic processing infrastructure is also a stated priority for President Lula, according to an official from Brazil's Ministry of Development, Industry and Foreign Trade, who requested anonymity to discuss ongoing talks.
U.S. officials see prospects for sizable capital flows. They have identified more than 50 mining projects in Brazil that could contribute to international efforts to diversify sources of critical minerals and reduce reliance on China. Participants say the São Paulo event will give local miners a forum to pitch projects to prospective U.S. backers and to explore potential investment and partnerships.
Organizers and attendees will be watching whether diplomatic tensions will overshadow commercial and technical discussions at the event. The meeting is intended to serve as a platform for deal-making and for outlining ways to expand Brazil's role in processing critical minerals, but the broader political context - including the fallout from the barred visit and the separate agreement with a state governor - remains an important factor shaping expectations on both sides.