Lula treats critical minerals as new pre-salt, and the government is evaluating the entry of BNDES and Petrobras into companies in the sector

Critical minerals are essential raw materials for equipment and technologies linked to the energy transition and defense, among other uses. They receive this name because supply faces challenges, whether due to the concentration of production in a few countries or due to difficulties in the refining process.

According to participants at the meeting, Lula is excited about the possibility of exploring these minerals, carrying out processing in the country and creating a national industry focused on rare earths. The scenario was compared to the period of pre-salt discovery, in 2006, during the PT member's first term. It is no coincidence that the federal strategy directly involves Petrobras.

According to information obtained by the report, the National Bank for Economic and Social Development (BNDES) and the oil company are negotiating the creation of a Participation Investment Fund (FIP) to enter into ventures in the sector. The model would be similar to that adopted by the state bank in partnership with Vale in the FIP Minerais Estratégicos.

The idea is for Petrobras to participate, alongside BNDESPar, in a new equity fund and expand its research activities through the Petrobras Research Center (Cenpes). The objective would not be to transform the company into a mine operator, but to use it as an investor in projects considered strategic for the national industry.

The proposal represents the state-owned company's return to the mineral sector, after decades away from this activity since leaving potash exploration.

In the agreement with Vale, BNDESPar targets strategic minerals intended for the energy transition, decarbonization and fertilizer production. The fund can mobilize up to R$1 billion. BNDESPar and Vale contributed R$250 million each, as anchor investors, while the rest must be raised in the market. The size of the FIP that could be created with Petrobras has not yet been defined.

The strategy represents a change in relation to a proposal previously defended within the government itself, when the creation of a new state-owned company focused exclusively on the sector, called Terrabrás, was considered.

The idea, however, faced strong resistance from experts, businesspeople and members of the economic team, who pointed out risks of increased state intervention and low efficiency. Therefore, the alternative plan of expanding the role of existing institutions gained strength, using financial instruments instead of creating a new public company.

The initiative is part of Planalto's broader strategy to reduce Brazil's dependence on the export of raw ore and encourage the production of materials with higher added value. The government's diagnosis is that the country has some of the largest mineral reserves in the world, but still exports a large part of this wealth without carrying out the most profitable stages of the chain, such as refining, metallurgy and manufacturing of industrial products.

The plan represents a step beyond traditional financing policy. Instead of just granting loans, the government intends to expand the use of risk capital instruments, known as equity.

In this model, the fund buys a temporary stake in mining projects and helps finance research stages, mine implementation, construction of industrial plants and technological development.

When the venture matures, the stake can be sold to the market, allowing resources to be reinvested in new projects. The assessment is that the main current obstacle for the sector is not the lack of projects, but the difficulty in financing.

Many companies are still in the pre-operational phase or depend on technologies that require large investments before they start generating revenue.

In addition to the partnership with Petrobras, the government is discussing measures to expand the use of public guarantees and reduce financing risks. One of the ideas foresees the use of the Export Guarantee Fund (FGE) to facilitate the entry of private investors. Access to Climate Fund resources in projects linked to the energy transition is also under discussion.

Another debated front involves expanding the operations of Brazilian Nuclear Industries (INB). Currently concentrated in the uranium chain, the state-owned company will be able to diversify its activities to other minerals considered strategic.

Experts classified the meeting as an important step towards consolidating the national critical minerals policy. Professor at the Polytechnic School of the University of São Paulo (USP) Giorgio de Tomi stated that the meeting “was spectacular”, as it represented the validation of the proposals presented to the government.

"It crossed the line and validated the government's actions. We discussed State goals, we warned about the need for investment in mineral research and the chain prior to the opening of the mine", stated the researcher.

Ministers also recognized, during the meeting, that the bill that creates the national critical minerals policy should only be voted on after the elections and that the continuity of the measures discussed depends on Lula's re-election.

The message conveyed was that, in the event of Flávio Bolsonaro's (PL) victory, there would be greater foreign leadership in the exploration of critical Brazilian minerals.

The project has already been approved by the Chamber of Deputies and awaits a vote in the Senate. The president of the House, Davi Alcolumbre (União Brasil-AP), has postponed the analysis of the proposal.

Government members believe that Brazil cannot just observe the arrival of foreign companies interested in exploring national soil. Lula repeated, on more than one occasion, that it is necessary to seize the opportunity and that “the hammer is down” on the creation of a national policy for rare earths.

The president stated that he will create a council directly linked to the Presidency of the Republic to deal with the issue.

"If we lack a laboratory, we have to create a laboratory. If we lack the necessary institute, we will have to create the institute", he said.

Lula also provoked the United States, which has already shown interest in critical Brazilian minerals.

"I am amazed to see how much knowledge about critical minerals and rare earths is around this table. It is clear the potential knowledge that Brazil has in all these areas, which seem to be exclusive to China, obsessed with being the only one in the world, and the envy of Trump, who wants to take knowledge from China", he declared.

The president added: "If Trump is worried about China, he can start worrying about Brazil. We don't want to be sellers of raw materials. We want to be exporters of intelligence and knowledge."

In a meeting, Lula says that critical minerals will give the country financial sovereignty

During a meeting on critical minerals, the president stated that the sector can expand Brazil's financial and technological autonomy, criticized external dependence and defended the State's participation in financing innovation