MARK A. SMITH: President Lula’s Niobium Sword Of Damocles

Before President Trump, America spent years wringing our collective hands about China and rare earths.  Now, with President Trump’s turbocharging of the Defense Production Act and other tools in the federal toolbox, we are taking action not seen since the Korean War to reduce our dependence on foreign critical minerals.

But while the focus in recent months has been largely on Beijing, another vulnerability has emerged on the near-term radar screen:  niobium from Brazil.

Niobium is a little-known but irreplaceable metal. Added in small amounts to steel, it dramatically increases strength and durability while cutting weight—critical for pipelines, bridges, turbines, and automobiles.  Virtually every steel-chassis vehicle on the planet contains niobium.  That’s not surprising given that one pound of niobium added to one ton of steel doubles the steel’s yield strength.

In aerospace and defense, niobium enables jet engines and hypersonic missiles to withstand extreme temperatures.  It is vital to every Navy ship and submarine that sails, and every fighter jet and commercial airliner that flies.  It is crucial to the superconducting magnets in MRI scanners and particle accelerators.

The U.S. consumes thousands of tons each year and imports 100 percent of it, overwhelmingly from Brazil.  That gives Brazilian President Luiz Inácio Lula da Silva a card to play that rivals the rare earth card Chinese President Xi recently laid on the table.  Except, in the case of niobium, the stakes are even higher for the U.S.

According to the U.S. Geological Survey (USGS) Mineral Commodity Summaries 2025, Brazil accounted for about 66% of U.S. ferroniobium and niobium metal imports in 2024, with Canada supplying roughly 27–29%. But Canadian supply does not fully insulate the U.S. from Brazilian dominance; Canada has relied, in part, on Brazilian ores or concentrates as recently as 2023, according to international trade data.

As Fox News has reported extensively, China has imposed export restrictions on rare earths as leverage in geopolitical disputes. President Xi Jinping has made clear that Beijing views critical-mineral dominance as a strategic weapon, not just an economic advantage.