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.
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.