Brazil is emerging as a key player in the global rare earths market, driven by growing geopolitical tensions and Western efforts to reduce dependence on China for these critical minerals. With the world’s third-largest rare earth reserves, Brazil has the potential to become a significant supplier of materials essential to green energy, advanced technology, and defense. However, challenges such as low prices, technical complexities, and competition from China continue to shape the industry’s trajectory.
Brazil’s rare-earth sector remains a relatively small part of the country’s mining industry, but investments are increasing rapidly. The Brazilian Mining Association (Ibram) estimates that investments in rare-earth projects will reach $1.46 billion between 2024 and 2028, a significant jump from just $150 million over the previous five years. However, this still pales in comparison to the $64.5 billion expected to be invested in Brazil’s broader mining industry, primarily in iron ore, copper, and gold.
Despite this, interest from international investors is growing. Companies such as Aclara Resources, Viridis Mining & Minerals, Meteoric Resources, and Terra Brasil Minerals are advancing new projects, particularly in Goiás and Minas Gerais. The Carina project, the most heavily invested-in rare-earth venture in Brazil, is expected to begin production in 2028 and has a planned lifespan of 22 years. If successful, it will contribute significantly to global supplies of dysprosium, terbium, and praseodymium-neodymium (Pr-Nd), all of which are essential for high-performance magnets used in electric vehicles and renewable energy technologies.
The Serra Verde Group is at the forefront of Brazil’s rare earth industry. The company, which began commercial production in Goiás state in 2023, plans to increase output to 5,000 tons of rare earth oxide annually by 2026, with the potential to double production before 2030. Serra Verde’s efforts have earned recognition from the Minerals Security Partnership, an initiative involving the U.S. and 14 allied nations aimed at securing critical mineral supply chains.
Serra Verde is also exploring strategic partnerships to expand its refining and processing capabilities. Backed by investors such as Denham Capital and the UK’s Vision Blue Resources, the company secured a $150 million investment in October 2024 and is currently negotiating further funding. Despite challenges, including a 70% decline in rare-earth prices over the past two years, Serra Verde remains optimistic, projecting an 8.5% annual growth in demand for its products through 2035.
China dominates the rare earths industry, accounting for 70% of global production and 90% of refining capacity. The U.S. and its allies have been working to establish an alternative supply chain by 2027, amid concerns about supply disruptions amid rising geopolitical tensions. While Brazil’s rare earth mining sector is growing, refining and processing remain significant hurdles.
Currently, much of Brazil’s rare-earth output is still shipped to Asia, reinforcing concerns that the country could become just another raw-material supplier rather than a fully integrated producer. To address this, the Brazilian government has launched a $194 million fund to finance strategic mineral projects and is developing a rare-earth magnet factory to support domestic processing. Additionally, companies such as Ionic Rare Earths and Viridis Mining & Minerals are developing rare-earth recycling technologies to strengthen Brazil’s role in the value chain.
Brazil’s rare-earth industry faces multiple obstacles, including technical challenges in processing, volatile prices, and competition from established producers such as China and Australia. However, the country has several competitive advantages, including low labor costs, access to clean hydropower, and well-established mining regulations.
If Brazil successfully expands its rare earth production and processing capabilities, it could become a key alternative supplier to the West. However, without significant investment in refining infrastructure, Brazil may struggle to move beyond its traditional role of exporting raw materials and to capture greater value along the supply chain.
With the right partnerships, government support, and technological advancements, Brazil has the potential to establish itself as a major player in the global rare earth industry. The next decade will be critical in determining whether the country can turn its vast mineral wealth into a strategic advantage on the world stage.