US-Brazil rare earth partnership gains momentum amid China supply concerns

US-Brazil rare earth partnership aims to diversify critical minerals

The US is actively exploring a rare earths partnership with Brazil to reduce dependence on Chinese supplies.
Officials from both governments, alongside industry and financial stakeholders, held preliminary discussions.
Brazil’s government expressed openness to collaboration, signaling potential opportunities for critical minerals development.

Untapped Brazilian rare earth deposits rank among the largest globally, offering strategic leverage for Washington.
These 17 metallic elements play a key role in technologies ranging from electric vehicles to defense systems.
China currently dominates mining and processing, and export restrictions last year underscored the US vulnerability.

Initial talks between the US and Brazil began in December, complementing America’s broader diversification strategy.
Previous partnerships were forged with Australia and the Democratic Republic of the Congo to secure critical minerals.
Brazil’s vast geology, combined with new national mining initiatives, positions it as a key supply partner.

Investment and political hurdles in Brazil rare earths sector

Brazil has historically faced bureaucratic and investment challenges that slowed mineral development.
Only 30% of its territory has been mapped for mineral resources, limiting exploration progress.
Recent reforms, including the National Mining Policy Council, aim to accelerate critical mineral projects.

The country’s sole active rare earth producer, Serra Verde, received $465 million in US financing.
Canada’s Aclara Resources also targets production later this decade, expanding Brazil’s market potential.
However, Europe competes for partnerships, and US trade policies may complicate diplomatic negotiations.

Political analysts expect US-Brazil cooperation on rare earths to advance as tensions ease.
A formal agreement could strengthen the US supply chain and reduce dependence on China.

SuperMetalPrice Commentary:

A US-Brazil rare earth partnership could reshape global supply dynamics.
Diversifying away from China mitigates geopolitical risk and secures critical minerals for high-tech and defense sectors.
Investors should monitor Brazilian project financing, regulatory reforms, and production timelines for strategic opportunities.