Brazil is setting new terms for resource access, requiring foreign partners to process rare earth minerals within the country. This move is expected to reshape global competition among Chinese and Western resource firms.

Brazil will require foreign partners to process rare earth minerals domestically as a condition for access to its reserves, a senior government official said this week, setting terms that could reshape how Chinese and Western firms compete for resources the country has long exported raw. “Our doors of Brazil to foreign investment are open, but our position has matured,” Leonardo Durans, a senior official at Brazil’s industry ministry, said at a press conference with international media on...