Lula demands industrialization of countries with critical minerals in the G7
President Luiz Inácio Lula da Silva defended, this Tuesday (16), that countries holding critical minerals participate in the most sophisticated stages of the production chain, with industrialization, technology transfer and formation of national capabilities.
The statement was made during participation in the G7 Summit, in Évian-les-Bains, France, at a time when the main advanced economies are discussing ways to reduce dependence on China in the supply and processing of strategic inputs for the energy and digital transitions.
"The energy and digital transitions cannot reproduce historical patterns that concentrate economic benefits in a few actors. Countries that hold critical minerals must participate in the highest value-added stages of the chain, through industrialization, technology transfer and capacity building, according to their national needs," stated Lula.
The speech serves as a direct message to rich countries, which have sought to expand access to reserves of lithium, nickel, copper, rare earths, graphite and other minerals considered essential for batteries, electric cars, wind turbines, semiconductors, military equipment and cutting-edge technologies.
In recent months, the G7 has intensified discussions to create cooperation mechanisms aimed at securing the supply of critical minerals.
The strategy is set against the backdrop of China's strong concentration in the processing, refining and production stages of industrial components, especially in the case of rare earths and permanent magnets.
Brazil, however, has argued that the diversification of global chains cannot be limited to replacing Chinese suppliers with new raw material exporters.
In the Brazilian government's assessment, international agreements in the sector need to include productive investment, local processing and added value in countries that hold mineral reserves.
The Brazilian position is that critical minerals should be treated as a tool for industrial development and economic diplomacy.
The government has repeated, in negotiations with the United States, European Union and Asian countries, that the country does not just intend to sell raw ore, but to attract stages of processing, refining, separation and industrial transformation.
This guideline appears in agreements and memorandums signed or negotiated by Brazil with countries such as India, Saudi Arabia and South Korea.
In common, these instruments seek to expand cooperation in critical minerals, technology, research, energy transition and production chains with greater added value.
Lula's charge also comes amid the progress, in Brazil, of a new national policy for critical and strategic minerals.
The text approved by the Chamber of Deputies and being analyzed by the Senate expands the role of the State in coordinating the sector, creates a council linked to the Presidency of the Republic and provides instruments to stimulate industrialization in the national territory.
Among the central points of the proposal is the possibility for the government to define priority projects and establish requirements or commitments to add value associated with the production and export of critical minerals.
The idea is to prevent Brazil from remaining just at the initial stage of the chain, as a supplier of strategic inputs for the industry of other countries.
The topic gained strength because critical minerals began to be seen as geopolitical assets.
Developed countries want safer chains and less exposed to trade restrictions, while countries with reserves seek to capture a greater share of the economic gains generated by the energy transition.
In the Brazilian case, the government assesses that the country has three competitive advantages: relevant mineral reserves, availability of renewable energy and diplomatic autonomy to negotiate with different economic blocs.
The bet is to use these factors to attract investment and avoid a new round of external dependence based solely on the export of commodities.
Source: CNN