RIO DE JANEIRO (AP) — Brazil’s Senate has approved a bill to regulate the exploration of critical minerals, including rare earths, marking a step toward exploiting its vast reserves. The bill approved Thursday now awaits President Lula’s signature. It establishes a legal framework and offers tax incentives for domestic processing. Brazil holds the world’s second-largest reserves of rare earth elements, used in products like smartphones and electric vehicles. While China dominates the global supply chain, Brazil aims to position itself as an alternative. The bill also creates a fund to support mining projects and encourages mineral processing within the country.

By Eleonore Hughes, Associated Press

Banner image: A mine operated by Serra Verde Mining digs for rare earth elements including neodymium, praseodymium, terbium and dysprosium, which are essential for the production of permanent magnets, in Minacu, Goias state, Brazil, July 28, 2025. Image courtesy of Eraldo Peres, Associated Press