Brazil seeks partnership with Europe to explore critical minerals

O Brazil look for partnership of European countries for the exploration of , fundamental elements for the energy transition, said the Brazilian ambassador to Germany, Rodrigo Baena Soares.

The diplomat gave a press conference to journalists in Hannover, in northern Germany, at a presentation event for Hannover Messe, the largest industrial technology fair in the world, which will take place at the end of April.

In a scenario of closer links between the two sides of the Atlantic, as in, Europeans are seen as “very important partners“, but the expectation is that the relationship will also include technology transfer, so that Brazil has a leading role in the production chain.

“It’s very important that we don’t have a traditional scheme of just exporting raw minerals,” Baena said at the end of February.

“It is important that we think about adding value in Brazil. We are part of the supply chain and have technology transfer. Production in Brazil, but with the participation of our companies”, he argued.

The diplomat acknowledged that the Brazil has enormous reserves of these strategic elements and has not yet emerged as one of the champions of extraction and refining.

“We have important reserves, especially of rare earths, but also of other minerals, and we can benefit from European and, above all, German technology. I have already spoken with the German authorities about this aspect”, he said.

Strategic elements

A topic of interest to international powers, critical minerals are essential elements for strategic sectors, such as energy transition, technology and defense.

Among these resources are minerals such as lithium, cobalt, nickel, graphite, copper, manganese, niobium and rare earths (a specific group of 17 chemical elements).

According to the Geological Survey of Brazil, linked to the Ministry of Mines and Energy, Brazil emerges as the largest global holder of niobium reserves (94%), second largest of graphite (26%) and has the third largest global reserves of nickel (12%).

In relation to rare earths, the country concentrates 23% of the world’s reserves.

These elements are used to improve the efficiency of various high-technology and clean energy products, with applications in wind turbines and electric motors, for example, in addition to use in aerospace equipment, such as satellites, rockets and missiles.

However, a study by the Institute of Applied Economic Research shows that, while the production of these elements grows, Brazil is moving in the opposite direction in many of the strategic minerals.

Hanover Fair

The Hannover Messe, which will take place from April 20th to 24th, will have Brazil as a partner country this year. It will be an opportunity for around 140 Brazilian exhibitors to bring technologies and industrial innovations to Europe.

The event will welcome representatives from hundreds of countries in the city of around 550 thousand inhabitants.

“We are going to hold a side event on critical minerals, showing Brazil’s potential in this area as well,” said the Brazilian ambassador.

Mercosur and EU Agreement

The diplomatic representative highlighted the fact that the international fair takes place at a time when the free trade agreement between the two economic blocs is moving toward implementation.

Baena Soares considers that participation in Hannover Messe and the search for partnerships with Europeans is “a very important sign to the world that multilateralism is still present”.

“We are sure that this [o acordo] will make this message very clear to the world that unilateral actions and protectionism are not the appropriate response to the challenges of the world today.”

The conclusion of the treaty, signed in January, took place during the tariff imposed by the United States government, which began to surcharge imported products that arrive in American territory, claiming to defend the national economy.

On February 20th, a decision by the . The American president reacted by imposing 10% tariffs on several countries.

Implementation there and here

At the beginning of March, the Brazilian Senate approved the terms of the agreement that creates the free trade zone with the more than 720 million inhabitants of Europe. In addition to Brazil, the South American bloc is made up of Argentina, Paraguay and Uruguay.

On the European side, there is still resistance from some countries, such as France, but the European Commission, the bloc’s executive body, decided to provisionally apply the treaty.

Mercosur has committed to eliminating tariffs on 91% of European goods arriving in South America, within 15 years. The European Union will have to eliminate tariffs on 95% of goods purchased from Mercosur, within 12 years.

While some European countries were against the treaty with Mercosur, Germany is one of the defenders of the agreement.

For the ambassador, “the agricultural and industrial sectors in Brazil will benefit from this agreement in different aspects”.

Hannover Messe is organized by Deutsche Messe AG. The company’s CEO, Jochen Köckler, points to the agreement as a chance to “really” create a free trade area.

“It’s a fantastic moment. If you look at how the United States is acting with tariffs and how other countries are positioning themselves, it’s an extraordinary opportunity, not just to bring Brazil and Germany closer together, but Brazil and Europe.”

Brazil and Germany

During a meeting with journalists at the end of February, the Brazilian ambassador pointed to the fair as an opportunity to strengthen economic and political ties with Europe and, especially, Germany. For him, the two countries “have complementarities”.

“Brazil offers a stable, safe and reliable regulatory framework, a clean energy matrix, a very competitive cost and industrial and engineering capabilities”, he praised, anticipating that President Luiz Inácio Lula da Silva and the Chancellor (head of government) of Germany, Friedrich Merz, will meet during the event in Hannover.

According to the Ministry of Development, Industry, Commerce and Services, trade between the two nations reached US$20.9 billion (around R$110 billion) in 2025.

Brazil had a deficit in its trade balance, having exported US$6.5 billion and imported US$14.4 billion from Germany.

Germany is the third country that sells the most to Brazil and the 11th that buys the most from it. Ambassador Baena Soares recalled that the Old Continent country is one of the ten largest investors in Brazil, with around 40 billion euros in direct investment stock.

“We have a very important presence of more than 1,000 German companies in Brazil,” said the diplomat.

*The reporter traveled at the invitation of Deutsche Messe AG, organizer of the Hannover Messe.

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