Brazil holds the eighth-largest uranium reserve globally but faces significant delays in nuclear energy production due to state inefficiencies and monopolization by Indústrias Nucleares do Brasil (INB). Currently, INB cannot meet the annual demand of 450 tons for the Angra 1 and 2 nuclear plants, relying on imports, particularly from Russia, to fill the gap. The only operational uranium mine in Caetité, Bahia, can produce only 260 tons, reflecting a critical limitation in domestic supply that necessitates external sourcing.

Moreover, Brazil lacks the technological capability to convert uranium concentrate into gas, a crucial step in the enrichment process. This gap results in Brazil exporting uranium for conversion overseas before importing it back to the country for final processing at INB's facility in Resende, RJ. This inefficient cycle undermines Brazil's potential in nuclear energy, particularly when considering the country's substantial uranium resources.

In late 2022, a law was passed to authorize partnerships between INB and the private sector, providing hope for revitalizing the industry. However, the current administration under Luiz Inácio Lula da Silva has delayed the publication of a crucial decree that would regulate these agreements, including essential criteria for contracts and profit-sharing. This inaction prolongs Brazil’s dependency on foreign uranium and hampers the development of its nuclear capacity, indicating a significant policy challenge that needs to be addressed urgently.