Brazil is attracting growing international interest in its rare earth resources as demand rises for the critical minerals used in electric vehicles, wind turbines, artificial intelligence and advanced technologies.
The country holds an estimated 21 million tonnes of rare earth reserves, making it the world’s second-largest holder after China, which has around 44 million tonnes.
Global mining companies are increasingly investing in Brazil as governments and industries seek to diversify supply chains away from China.
Andrew Tunks, CEO of Australian mining company Meteoric Resources, said: “The next big, rare earth projects in the world will be in Brazil.”
Meteoric is developing its Caldeira project in Minas Gerais, which is believed to be the world’s largest ionic clay rare earth deposit.
These deposits contain valuable elements including dysprosium and terbium, which are essential for high-performance magnets.
According to the International Energy Agency, demand for magnet rare earth elements has doubled since 2015 and is expected to grow by a further third by 2030.
Rising electrification, renewable energy deployment, automation and artificial intelligence are driving consumption.
Interest in Brazil’s sector has accelerated rapidly. The country’s National Mining Agency is currently assessing 2,758 rare earth projects. Between 2023 and 2024 alone, 1,662 mining applications were filed, compared with just over 250 applications submitted between 1975 and 2020.
In April, USA Rare Earths acquired Brazil’s only active rare earth mine, Serra Verde’s Pela Ema operation in Goiás, for $2.8 billion.
The company described the asset as a strategic source of all four key magnetic rare earth elements outside Asia.
Despite its resource potential, Brazil still faces challenges.
China controls more than 90% of global rare earth refining capacity and around 95% of permanent magnet production, meaning Brazil must develop domestic processing capabilities if it is to become a significant competitor in the global market.
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