The memorandum of understanding signed between Brazil and Spain in the critical minerals sector opens space for the Spanish government to seek financing instruments from the European Union for Brazilian projects linked to the mineral chain.
The text of the agreement provides for the two countries to examine funding alternatives through Spanish mechanisms and also the Global Gateway strategy, a platform used by Brussels to mobilize investments in areas considered strategic.
In general terms, the agreement has political and diplomatic weight, but still little practical materiality. The most relevant potential of the agreement lies less in immediate bilateral trade and more in the possibility of Spain functioning as a political and institutional channel for Brazil with Europe in a sector that has gained geopolitical weight.
The memorandum cites cooperation in exploration, research, mining, refining, recycling, transformation, capacity development and investment initiatives, in addition to providing support for dialogue between governments, companies, universities and research centers.
All of this, however, still appears generically in the memo. The list brings together broad fronts of cooperation and repeats common formulations in diplomatic agreements of this type, without detailing projects, goals, schedule, values or concrete execution mechanisms.
The most important section, from an economic point of view, is the one that expressly mentions the analysis of financing alternatives with instruments from the Spanish Ministry of Economy, Commerce and Enterprise and with resources from the European Union’s Global Gateway strategy.
The European initiative seeks to mobilize up to €300 billion in global investment and has been used by the EU to support strategic chains, including critical raw materials and associated infrastructure projects.
The source’s assessment is that the agreement can help Brazil bring critical mineral projects closer to the European financing radar, especially in areas that are more in line with the federal government’s strategy, such as refining, industrial transformation, traceability, sustainability and value addition in the national territory.
The European Union itself has reinforced, in its policy for critical raw materials, the search for partnerships with countries considered reliable and for more diversified, resilient and sustainable supply chains. The federal government already states that there are five projects mapped out by European investors and expected to receive funding.
The memorandum, however, does not represent automatic release of resources.
The document expressly states that it does not create legal obligations, does not imply financial transfer between the signatories and that any initiative with a commitment to contribution will depend on the signing of specific instruments.
In other words: the agreement creates a gateway and a channel for dialogue, but any practical effects will still depend on concrete projects, financial structuring and future negotiations.
Signed in Barcelona last Friday (17), the memorandum will last for five years.
