US and Europe promote mineral cooperation to restructure supply chains, Brazil plays a crucial role

According to CNN Brazil News, Brazilian Finance Minister Dario Durigan will travel to Washington in mid-April to attend the G7 Foreign Ministers' Meeting to discuss the security of critical mineral supply. The G7 launched an action plan last year to mobilize public and private funds to support allied countries in mineral extraction, processing, and innovation, aiming to diversify production currently highly concentrated in China.

Brazilian media Gazeta do Povo reported that the US President Trump administration proposed a memorandum of cooperation to Brazil in February this year, including joint investment, technology transfer, geological surveys, and recycling technology. The document also mentioned a "price mechanism," hoping to establish a minimum price to prevent Chinese dumping, and emphasized investment priority, but the US denied any exclusivity. A similar agreement with Australia stipulated at least US$1 billion in funding, while the Brazilian version did not specify an amount, raising internal questions within the Brazilian government about the strength of the commitment.

In addition to the United States, Brazil is also actively expanding European cooperation. News website Metrópoles pointed out that Brazilian President Luiz Inácio Lula da Silva will embark on a European trip next week and is expected to sign a critical mineral agreement in Spain. This is a continuation of Brazil's efforts to establish a multilateral framework globally, following cooperation agreements with India and South Korea. The government is also considering establishing a "National Mineral and Rare Earth Policy Committee" to ensure that control over the entire value chain is not limited to raw material exports.

Analysts believe that Brazil's position in the energy and mineral supply chain is rising due to geopolitical tensions. How the Lula government balances diplomacy by deepening strategic cooperation with the US and Europe while maintaining its primary trade relationship with China will be a test. (Edited by Tang Sheng-Yang) 1150411