Topic analysis

Brazil is set to cut in on China's rare earths dominance

Brazil, holder of the world's second-largest rare earth reserves after China, is experiencing a sharp surge in rare earth mining investment and permit applications, as global demand for the critical minerals (used in electric vehicles, wind turbines, AI infrastructure, and advanced electronics) grows, with international mining firms positioning the country as a potential alternative to China's near-monopoly on rare earth refining and magnet production. While Brazil has geological advantages including widespread ionic clay rare earth deposits and low-cost renewable energy for processing, it currently mostly exports raw rare earth ore and is working to build domestic value chains to compete long term.