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The @FinancialTimes reported today that the United States and Brazil reached a rare earths deal involving a $565 million U.S. financing package to access and offtake controls for rare earths produced by Serra Verde in Brazil, one of the few producers in the world of heavy rare earths outside China.
For the U.S., the deal secures access to critical minerals essential to defense, advanced manufacturing, and key technologies. For Brazil, it brings investment and a meaningful opportunity to develop mineral reserves in a way that enhances its economic leverage for years to come despite of who is running the government.
One of the more consequential, and still not fully appreciated, aspects of the Trump administration’s foreign policy has been its focus on natural resources diplomacy. Governments do not need to trust one another, like one another, or align on every issue to make a sensible deal when cooperation advances their national interests. Despite real disagreements between Washington and Brasília in other areas, this is a reminder that progress remains possible when interests converge.
ft.com/content/1a2e39…
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