In a surprising move that sets Goiás apart from Brazil’s federal government, Governor Ronaldo Caiado has implemented a rare earths extraction and development policy that sidelines the Lula administration and aligns strategically with the United States. This development intensifies political tensions ahead of the presidential race and raises critical questions about Brazil’s sovereignty over its mineral resources.
- Goiás enacts rare earths policy ahead of federal government
- Memorandum signed with the US for strategic data sharing
- Tensions rise between state governor Caiado and President Lula
What happened
Governor Ronaldo Caiado of Goiás, the Brazilian state with the country’s largest rare earth reserves, enacted a state-level policy to regulate and develop the rare earth minerals sector. The law was passed rapidly in late August 2026 following a white paper authored by prominent technology lawyer Ronaldo Lemos. Shortly after, Goiás signed a memorandum of understanding with the United States, stipulating joint ownership of geological data and granting exclusive rights to US-designated entities. This move preceded and diverged from the federal government’s national rare earths strategy.
The Goiás government justified its actions as proactive leadership in the face of growing international concern over supply chain dependencies on China, driven in part by a prior diplomatic mission to Japan. Meanwhile, the federal government under President Lula—also a presidential candidate—criticized Goiás for potentially violating the Brazilian Constitution, which reserves mineral rights to the federal government, and accused Caiado of opening Brazil to foreign exploitation.
Why it matters
Brazil’s rare earth reserves rank second globally, making the country a key player in the strategic minerals landscape essential for modern technologies and clean energy industries. By moving ahead of federal initiatives and aligning explicitly with the US—under former President Donald Trump’s supply chain diversification agenda—Goiás is positioning itself as a crucial gateway for American access to critical resources. This could reshape Brazil-USA relations and influence global technology markets.
However, the nature of the agreement raises sovereignty concerns, with critics arguing that sharing strategic geological data and allowing exclusive access to US entities risks undermining Brazil’s control over its natural resources. The policy split highlights internal political rivalries ahead of Brazil’s presidential election and questions around federal versus state authority in managing national assets.
What to watch next
The ongoing presidential campaign will likely see rare earths policy become a hot-button issue, as Governor Caiado uses his pioneering policy as a campaign platform, while President Lula and his allies seek to reassert federal control and challenge the legality of Goiás’ actions. Legal disputes over constitutional authority regarding mineral extraction rights are expected to emerge.
International stakeholders, particularly the US and Japan, will monitor Brazil’s evolving rare earths governance closely, as their supply chain strategies hinge on access to these resources. The future of Brazil’s rare earths sector will depend on federal-state negotiations, potential regulatory harmonization, and the outcome of related political power struggles.