Brazil is fast becoming a significant player of rare earths

Brazil is fast becoming a significant player in the global market. Serra Verde, a Brazilian mining company, is nearly the Western world’s first supplier of this material.

These 17 elements are vital for electromobility and energy transition. In June, Serra Verde started the initial phase of the Pela Ema plant in the country’s Goiás state.

Denham Capital, which controls Serra Verde, invested US$150 million in the project in January 2023.

They have scheduled commercial production for the year-end and are considering a second plant.

Meanwhile, in Chile, the Módulo Penco project by Aclara Resources halted its environmental process.

The Biobío Environmental Assessment Service ended the process on July 3.

Aclara Resources plans to resubmit the project for evaluation by late 2023 or early 2024, targeting operational productivity by 2026.

Pela Ema and Módulo Penco aim to provide an alternative to China’s rare earth supply.

China controls 90-95% of the global supply, influencing the prices and availability of these elements.

Both projects include the ‘Four Fab’: neodymium, praseodymium, dysprosium, and terbium.

These elements are crucial for electric vehicle motors, electric turbines, and other green technologies.

Moreover, Brazil is quickly becoming a crucial player in this sector. Aclara Resources began an exploration campaign in Brazil, which showed promising results.

The Brazilian discovery means growth and productive diversification for the company listed on the Toronto Stock Exchange, with the Hochschild group from Peru as its main shareholder.

This information is according to the latest presentation to investors.

SERRA VERDE

According to its own statements, Serra Verde is one of the largest ionic clay deposits outside China.

It has competitive and environmental advantages due to its deposit nature and location. It is situated in an established mining area near renewable energy infrastructure.

With information from Diario Financiero Chile