Brazil's Finance Minister Confirms Critical Minerals Regulation Will Not Include New Tax Incentives

April 24, 2026 - 23:23

BRASILIA – Brazil’s forthcoming regulatory framework for critical minerals will not introduce additional tax breaks, Finance Minister Dario Durigan stated on Friday, clarifying the government’s approach to managing the country’s strategic mineral resources.

Speaking to reporters, Durigan emphasized that the planned rules focus on establishing clear guidelines for exploration, extraction, and commercialization of minerals deemed essential for global energy transition and high-tech industries. The minister stressed that the administration aims to create a stable and predictable regulatory environment rather than relying on fiscal incentives to attract investment.

“We are not considering new tax exemptions or breaks within this regulatory package,” Durigan said. “The objective is to provide legal certainty and streamline processes, not to compete through fiscal measures.”

Brazil holds significant reserves of critical minerals including lithium, niobium, graphite, and rare earth elements, which are vital components in batteries, electric vehicles, and renewable energy technologies. The government’s strategy seeks to position the country as a reliable supplier while ensuring environmental safeguards and local community benefits.

The announcement comes amid global competition for critical mineral supply chains, with many nations offering substantial subsidies and tax incentives. Durigan indicated that Brazil would instead leverage its existing competitive advantages, including abundant natural resources and a growing clean energy matrix.

The regulatory framework is expected to be presented in the coming months, following consultations with industry stakeholders and environmental agencies.