US and Allies Seek to Secure Critical Metal Supply Chains Through Brazil and Canada
The U.S. is ramping up efforts to secure critical metal supply chains through Brazil and Canada, focusing on reducing reliance on China. Brazil's significant resources, particularly its control of 90% of the global niobium supply and substantial lithium reserves, are central to this strategy, as demand for these metals is projected to surge due to advancements in steel alloys and electric vehicles. Collaborative initiatives with the EU and Japan, alongside investments in mining projects, further support this goal.
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The U.S. is intensifying efforts to reduce dependence on China for critical metals, with Brazil poised to play a key role due to its vast resources, including controlling 90% of the global niobium supply. The demand for niobium, essential for steel alloys and aerospace applications, is increasing.
Brazil's lithium reserves are also significant, with demand projected to rise 40-fold by 2040 due to electric vehicles and energy storage. The EU and Japan are collaborating to decrease dependencies, supported by the 'Critical Raw Material Act' and investments in mining projects.
The U.S. has invested in companies like Trilogy Metals and Lithium Americas. Australia and Canada are also enhancing their roles, with Australia signing an $8.5 billion deal with the U.S. and Canada establishing a $2 billion fund for critical minerals. St George Mining is developing a niobium and rare earth project in Brazil, aiming to capitalize on rising demand and has secured investment from prominent figures.
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