São Paulo, March 18th (Argus) - The neighboring states of Goiás and Minas Gerais in Brazil respectively have the largest reserves of rare earths and lithium in the country. These two states are signing important mineral cooperation agreements with the United States.
The governor of Goiás state, Ronaldo Caiado, signed a preliminary agreement on Wednesday to collaborate with the United States in developing the state's rare earth reserves. Minas Gerais state also plans to sign a similar agreement on lithium and other key minerals on March 19th. A source close to the matter exclusively told Argus.
"This partnership enables us to better map and develop our mineral potential," Caiado told reporters after signing the agreement. "It enables us to update our technology and make us more than just a raw material exporter."
Such state-level agreements also allow Goiás and Minas Gerais to expedite environmental permits and offer tax exemptions to American companies, but they do not grant exploration or exploration rights, which remain under the jurisdiction of the federal government.
For a long time, the United States has been seeking to reach a key mineral agreement with Brazil. It has proved that Brazil is one of the most difficult countries to negotiate in South America. Chile, Bolivia and Argentina - other lithium-producing countries in Latin America - as well as copper-rich Ecuador and Peru, have all signed bilateral agreements with the United States.
Caiado has been strengthening relations with the United States recently. He attended the US Key Minerals Ministerial Conference in Washington on February 4th, where the Trump administration signed 11 bilateral key minerals agreements during the meeting.
One day later, the US International Development Finance Corporation (DFC) provided $565 million in funding for the Serra Verde rare earth project in Goiás. The DFC had previously provided a $5 million loan for the Aclara project in the same state.
