Interest in rare earths surges in Brazil on several fronts

Interest in the rare earths sector has surged in Brazil, ranging from more mature initiatives to preliminary analyses of projects in a segment in which the country has the potential to become a global powerhouse.

Between 2021 and 2025, the number of research authorizations for rare earths increased 485.4%, according to data from the National Mining Agency (ANM), the sector’s regulator.

“Brazil produced 326 t of rare earths in the form of rare earth oxide concentrate in 2025. It exported US$14.9 million related to the concentrate and imported US$30.6 million in products from the mineral processing industry (rare earth element oxides and magnets). Currently, the country has four areas with active mining, all in Goiás,” reported ANM.

“In addition, there are 78 areas with a final exploration report approved, in the stage where there is the right to request mining, or with a mining concession application, with potential for the development of future projects. There are 3,067 areas that are in the mineral exploration stage and 75 locations with mineral potential identified by the Geological Survey of Brazil”, the regulator added.

Currently, China exercises broad control over the production and processing of rare earths and also holds the world’s largest reserves of these elements, which supply sectors such as technology and defense, among others. 

Amid the high demand from these segments and the concern of several countries about the strong dependence on Chinese inputs, Brazil is emerging as a strategic alternative. Although its production is still small compared with China’s, the country holds the second-largest volume of rare earth reserves in the world.

In this context, Brazil is seeking to take advantage of the growing interest in the sector, attracting investments for projects at different stages of development and recording a series of merger and acquisition transactions.

“International interest in Brazilian rare earths has gained scale. There are at least 18 foreign companies with mining processes in the country and more than US$ 3.5 billion between investments already made and initial implementation estimates. The figure outlines a portfolio of projects at different stages and does not necessarily represent funds already fully disbursed,” said Alexandre Pierantoni, head of Corporate Finance and Mergers and Acquisitions at Kroll for Latin America, in an article sent to BNamericas.

Given this growing interest, agents in the country’s mining sector are discussing ways to attract investment to mineral assets and, at the same time, develop a local value chain with processing capacity in Brazil.

“The Brazilian gain, therefore, will not be measured only in tons extracted or in the amount paid by a mining company. It will depend on how much processing is installed in the country, how many domestic suppliers take part in the operation, and which capabilities remain after the initial investment. Offtake contracts make mines viable; technological and industrial partnerships can make this viability also support Brazilian factories and services. This is the negotiation that will determine whether the country will be mainly a source of material for external chains or a more complete participant in them,” said Pierantoni.

Recent announcements

Brazil’s strong potential in the rare earth sector has driven a series of operations and investments.

Recently, the Australian miner Lynas Rare Earths announced the acquisition of fellow Australian company Meteoric Resources, owner of the Caldeira project in Minas Gerais, in a transaction valued at around US$670 million.

At the same time, the Australian company Viridis Mining and Minerals, owner of the Colossus project, also in Minas Gerais, obtained financing of 77.5 million reais (US$15 million) from the National Bank for Economic and Social Development (BNDES).

The financing will support the implementation of the company’s Rare Earth Research and Processing Center (CPTR). The unit will produce mixed rare earth carbonate on a pilot scale and conduct research to develop specific metallurgical techniques and optimize processing routes for ionic clays found in the Poços de Caldas region.

Another recent transaction that moved the rare earths chain was announced by Brazilian Critical Minerals Limited (BCM), which acquired control of the magnesium sulfate producer Sais Nordeste to meet the needs of its rare earths project, valued at US$74 million, in Brazil.

The company, owner of the rare earth project Ema, located in the state of Amazonas, acquired a 90% stake in Sais Nordeste Indústria e Comércio Ltda., a magnesium sulfate producer based in Feira de Santana, in Bahia. The value of the transaction was not disclosed.

BCM has also secured local supply agreements for magnesium oxide and sulfuric acid, the main raw materials used in the production of magnesium sulfate.

These moves took place after the announcement of one of the largest mergers and acquisitions transactions recorded in Brazil this year, also involving the rare earths sector. In April, the US-based USA Rare Earth completed the acquisition of Mineração Serra Verde, a company that holds a rare earths project in Brazil, in a US$2.8 billion transaction.