Brazil joins race with China for rare earth metals

Brazil plans to actively develop the extraction of rare earth metals, while Western countries are experiencing an acute shortage of these important elements for the «green» energy and defense industry. This makes Brazil the main competitor of China, which currently dominates this market.

Brazil's advantages are low labor costs, clean energy, ready-made regulations, as well as proximity to end-user markets, including Latin America's first magnet manufacturing plant. However, the country has to overcome difficulties such as falling prices for rare earths, technical problems and concerns of creditors.

Brazil today ranks third in the world in terms of reserves of rare earth elements. Brazil's key mine is the Serra Verde, which has already started production this year. The development of this mine took Brazil 15 years, and this sector still needs constant support in a highly competitive market. In addition to Serra Verde, the country plans to develop 2-3 more fields by 2030.

China accounted for 240,000 metric tons of rare earth element production last year, and its refining volume accounts for about 90% of global supplies. These resources are necessary for the production of wind turbines, electric vehicles and rockets. 

For Western countries seeking to stimulate production, Brazil seems promising and economically profitable. Experts believe that projects in Brazil, along with similar projects outside China, are the most cost-effective.