The Brazilian Chamber of Deputies approved a bill on Wednesday establishing a National Policy for Critical and Strategic Minerals to boost domestic production [1, 3].

This move aims to secure Brazil's strategic sovereignty during the global energy transition. By increasing the domestic supply of essential inputs, the government seeks to support the manufacturing of electric vehicles, smartphones, and military systems [1, 2].

The legislation creates the Empresa Brasileira de Mineração de Terras-Raras, known as TerraBras, a new state-owned company dedicated to the sector [2]. To stimulate exploration and production, the bill includes a credit line of R$5 billion [4]. Other incentives for the sector are expected to total several billions of reais [1].

Under the new framework, a committee linked to the Special Council of Critical and Strategic Minerals (CMCE) will be established to authorize mining operations [3]. The bill was processed under an urgency regime to expedite its passage through the legislature [4].

There are differing reports regarding the level of executive control over the final approval process. Some reports indicate the bill lacks a prior veto clause and instead uses a triage mechanism for homologation [5]. Other reports suggest the bill still requires executive approval, though the specific mechanism remains unclear [4].

The timing of the vote is notable, as it occurred on May 6, 2026, the day before a scheduled meeting between President Luiz Inácio Lula da Silva and U.S. President Donald Trump [1, 2].

“The legislation creates the Empresa Brasileira de Mineração de Terras-Raras, known as TerraBras.”

By establishing TerraBras and providing massive financial incentives, Brazil is attempting to reduce its reliance on foreign imports of rare earth elements and critical minerals. This strategy positions Brazil as a more autonomous player in the global green-tech supply chain and provides the Lula administration with significant economic leverage ahead of diplomatic engagements with the U.S.