Brazil has vast rare-earth reserves but produces only a small share

Brazil has the world’s second-largest rare-earth reserves, with 11 million tonnes, but produces just 0.5% of the global total.

Rare earths are 17 elements that are difficult to separate and are used in powerful magnets for electric cars, wind turbines, phones and military equipment.

China dominates the industry, accounting for 85% of refining and 90% of permanent-magnet production.

Since April 2025, China has required special licences for exports of seven rare earths and the magnets made from them, making sales slower and less certain.

The United States, the second-largest miner, still imports two-thirds of the rare-earth compounds and metals it uses because it struggles to separate the elements.

USA Rare Earth bought Brazil’s Serra Verde mine for $2.8 billion, reflecting US interest in Brazilian supplies, especially heavy rare earths found in Goiás and Minas Gerais.

The proposed path is to build refining and magnet-making in Brazil, with the state supporting research and early investment while private companies carry the work forward.