Brazil Sits on $2.6B in Rare Earth Projects. One Mine Works

By Iolanda Fonseca · February 19, 2026 · 3 min read

Key Points

— Brazil has 13.2 billion reais ($2.64 billion) in pre-operational rare earth investments from six companies — including Australian, Canadian, and Brazilian miners — with first projects expected to begin production from 2028, according to a mining sector report published Wednesday

— The country holds the world’s second-largest rare earth reserves at 21 million metric tons — behind China’s 44 million — but has only one operating mine: Serra Verde in Goiás, which just secured a $565 million U.S. government loan with an equity option

— The strategic question is whether Brazil can build processing capacity before Western capital simply extracts raw materials for refining elsewhere — a bill to create a national critical minerals policy is pending in Congress

Brazil sits on the world’s second-largest rare earth reserves — 21 million metric tons, behind only China’s 44 million. These 17 metallic elements are essential to electric vehicles, wind turbines, and missile guidance systems. Yet as the race to break China’s grip on critical minerals intensifies, Brazil has exactly one operating mine.

That could change. A mining sector report published Wednesday tallied 13.2 billion reais ($2.64 billion) in pre-operational investments across six projects. Australian miners Viridis Mining & Minerals and Meteoric Resources, Canadian firm Aclara Resources, and Brazilian company Atlas Critical Minerals all target production from 2028. Two more projects plan to start in 2029 in Araxá, Minas Gerais.

Washington is already buying in

The only commercial rare earth mine operating in Brazil is Serra Verde’s Pela Ema deposit in Goiás. The company began production in 2024 and aims to reach 6,500 metric tons of rare earth oxides annually. In February, it finalized a $565 million loan from the U.S. Development Finance Corporation — which includes an option for Washington to acquire a minority equity stake.

Brazil Sits on $2.6B in Rare Earth Projects. One Mine Works. (Photo Internet reproduction)

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Serra Verde has also renegotiated its Chinese offtake agreements, shortening decade-long contracts to expire by end of 2026. Future supply deals will go to Western buyers. The DFC simultaneously approved a $5 million convertible loan for Aclara Resources, which plans a U.S.-based refinery by 2028.

The processing problem

Reserves alone do not break dependencies. China controls roughly 60% of rare earth mining and nearly 90% of refining. Brazil currently has no large-scale separation capacity. Without it, Brazilian ore gets shipped to Chinese refineries — reproducing the very dependency Western investment is supposed to solve.

Industry leaders acknowledge the bottleneck. Julio Nery of the Brazilian Mining Institute said high exploration risk limits access to credit. Marisa Cesar of the Critical Minerals Association called for a dedicated fund to reduce financing risk. A bill pending in Brazil’s lower house would create a National Policy on Critical and Strategic Minerals with instruments to unlock credit.

Lula has signaled that domestic value addition would be a condition for any bilateral minerals agreement with the United States. Viridis Mining has announced Latin America’s first rare earth refining hub in Poços de Caldas, Minas Gerais, expected to launch in late 2026. Whether Brazil builds an industry or becomes another extraction site depends on how fast policy catches up with geology. This is part of The Rio Times’ daily coverage of Brazil affairs and Latin American financial news.

Brazil Sits on $2.6B in Rare Earth Projects. One Mine Works

Daily Brief

Washington is already buying in

The processing problem

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