The West has invested in 2,758 rare earth projects in Brazil to challenge China’s dominance in the rare earth sector.

Barbara Humpton, CEO of U.S. Rare Earths, stated after completing the acquisition that the mine located in Minaçu is the only site outside Asia capable of supplying all four magnetic rare earth elements—neodymium (Nd), praseodymium (Pr), dysprosium (Dy), and terbium (Tb)—at scale. The mine has now signed a 15-year offtake agreement with multiple U.S. government agencies. Brazil’s Caldeira rare earth mine hosts the world’s largest ion-adsorption clay deposit (shown above) and is currently operated by U.S. investors. Third, competing with China in rare earth mining is relatively straightforward; competing in rare earth processing, however, remains a long road for Brazil. Unlike China’s fully integrated rare earth industrial chain, Brazil historically focused solely on mining and exporting raw ore, conducting minimal local refining or deep processing. According to the International Energy Agency, China accounted for approximately 60–90% of global rare earth refining capacity in 2024. In the production of rare earth magnet materials, Chinese firms hold roughly 70–90% of global market share. Brazil’s rare earth industry upgrade and rapid development have been spurred by China’s export controls on rare earths. After former President Trump significantly raised tariffs on Chinese goods last year, China swiftly retaliated with export restrictions on rare earth materials—triggering a global shortage of these critical elements. Against this backdrop, not only directly affected developed countries—including the U.S., Japan, Australia, and Europe—have formed strategic alliances and massively invested in their rare earth industries, but also other resource-rich nations such as India, Vietnam, Sweden, Norway, and Brazil have begun actively supporting domestic rare earth development, hoping to seize opportunities amid this transformative shift in the global rare earth supply chain. Tony Tonks, Chairman of Australian mining company Meteoric Resources, noted that achieving these goals requires immense patience. The U.S., Australia, Japan, and Europe—benefiting from ample capital, advanced rare earth refining technologies, large domestic demand for rare earth elements, and government-backed industrial investments and price safeguards aimed at securing supply chains—have seen exceptionally rapid rare earth industry growth over the past two years. Refining capacities in the U.S. and Australia have surged. Yet Brazil “can quickly enhance competitiveness in rare earth mining, but producing rare earth materials will take much longer.” This delay may stem from Brazil’s lack of comprehensive industrial policy for rare earths and limited domestic manufacturing demand for rare earth elements—resulting in weak governmental enthusiasm. In fact, Brazil’s rare earth gold rush has been entirely driven by Western corporate investment. Fourth, Brazil’s rare earth development merits serious attention due to several unique advantages. First, Brazil’s rare earth deposits offer distinctive, easier-to-mine characteristics. According to data from Brazil’s Geological Survey (SBG), approximately 73% of the country’s rare earth deposits are ion-adsorption clay-type deposits. Francisco Valdir Silveira, former director of SBG, explained that in such deposits, “nature itself has already performed part of the processing—specifically, they form through granite weathering or decomposition, making them significantly easier to mine.”

Rare earths aren’t won just by digging! Does China’s technological moat render India-Brazil cooperation mere paper talk?

On February 21, Prime Ministers Modi and Lula signed an agreement on rare earth and critical mineral cooperation in New Delhi. Upon news of the deal, Western financial media erupted with sensational headlines—such as “India and Brazil join forces to counter China’s rare earth hegemony” or “The Global South is about to break the deadlock.” Reading such headlines, you might assume China’s grip on the rare earth sector is about to slip away. But before jumping to conclusions, let’s examine the numbers. China’s 2024 rare earth ore production stood at approximately 270,000 metric tons—nearly 69% of global output. Mining volume is merely the starting point; the real bottleneck lies downstream. In core processing stages—including rare earth smelting, separation, and purification—China accounts for roughly 90% of global capacity. Annual production of high-performance permanent magnets exceeds 300,000 metric tons in China, whereas the U.S.—despite years of ambitious planning—has only reached around 1,000 metric tons of targeted capacity. This means that even if rare earth ores are mined in Australia, Africa, or Brazil, they are highly likely to be shipped to Chinese factories for component manufacturing before being assembled into smartphones, electric vehicles, and missile guidance systems worldwide. The vibration motor in your smartphone or the drive motor in your EV most likely uses magnets made in China—not because China boasts about it, but because that’s simply how the industrial chain works. Brazil’s confirmed rare earth reserves stand at roughly 22 million metric tons—about 23% of the global total—making it the world’s second-largest reserve holder, trailing only China. Its niobium reserves represent a true ace: Brazil holds 98% of the world’s niobium reserves—a formidable strategic asset. India and Brazil included rare earths, lithium, and iron ore in their joint cooperation agenda, aiming to raise bilateral trade from approximately $15 billion to over $20 billion within five years. Simultaneously, India is coordinating with the U.S., the EU, Japan, and Australia to jointly plan and develop alternative supply chains. Its cooperation with Brazil represents the latest piece in India’s broader ‘non-China rare earth map.’ Taken together, these moves confirm India’s serious intent: diversifying its supply sources—moving eggs out of the single basket represented by China. During the 1970s oil crisis, Middle Eastern oil producers could disrupt the global economy with just a slight adjustment of the oil valve. It took the U.S. nearly two decades to meaningfully reduce its energy dependence after suffering that shock. Today, rare earths function like oil in the new energy era. Whoever controls the smelting and processing stages holds leverage in negotiations. China spent two decades embedding this logic across its entire rare earth value chain—from mining to magnet production—mastering every step. This wasn’t luck; it was built on massive, tangible industrial investment. Being constrained doesn’t guarantee defeat—it can sometimes catalyze genuine industrial upgrading. India and Brazil are pursuing precisely this path. Yet, this path is far from easy. The term ‘rare earth’ misleads many into thinking that opening more mines alone will change the game. The real challenge isn’t digging—it’s separating seventeen chemically similar elements cleanly from the same ore, refining them to industrial-grade purity, and then mass-producing stable, high-performance permanent magnets.

Uncovered: The Road to Sustainable Rare Earths Runs Through Brazil

Jun 24, 2026

C&EN explores sustainable rare earth mining efforts in Brazil, discussing chemical injection methods and centralized processing to counter China's market dominance.

cen

2026-06-24

Uncovered: The Road to Sustainable Rare Earths Runs Through Brazil

Uncovered: The Road to Sustainable Rare Earths Runs Through Brazil

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