Brazil’s Role in the Global Rare Earths Market
Brazil is emerging as a key player in the global race to secure rare earths, crucial for technologies ranging from mobile phones to green energy solutions. This shift challenges China’s dominance, creating opportunities for the United States and Australia, according to a study by The Associated Press and Reporter Brasil.
Brazil holds the second-largest rare earth reserves globally, trailing only China. Nearly half of Brazil’s 2,727 exploration applications come from foreign-owned companies, notably from the U.S., Australia, and Canada. The National Mining Agency reports a sharp rise in these applications, especially in recent years, including 268 submissions in the first half of 2026.
Environmental and Social Concerns
While the development of Brazil’s rare earth sector promises economic benefits, there are environmental and social challenges. Some mining activities may occur near sensitive areas, including the Amazon rainforest and Indigenous territories. Experts warn of potential environmental damage from mining operations, such as deforestation, pollution, and habitat disruption. Toxic chemicals and radioactive waste are also potential risks.
“Brazil’s rare earths are significant not only for their size but because they intersect with resource nationalism, energy demand, and competition with China’s dominance,” said Robert Muggah, co-founder of the Igarape Institute.
A considerable portion of the mining applications poses risks to protected areas and Indigenous territories. These concerns necessitate careful assessment and consultation with affected communities to ensure sustainable operations.
Growing Foreign Influence
Australia and the U.S. lead in mining requests in Brazil, with numerous applications backed by substantial foreign investments. The projects are supported by mechanisms that help mitigate financial risks in the mining sector. Only two out of every 1,000 rare earth prospects are likely to become viable mining projects.
U.S. investment has increased, partly in response to China’s export restrictions. The investment includes acquiring Brazil’s sole commercial rare earth producer, Serra Verde. The U.S. government has supported related initiatives with significant financial backing.
China’s Role and Brazil’s Position
While China shows interest in Brazil’s rare earths, their involvement remains limited compared to other nations. China’s reserves could be double those of Brazil. However, Brazil’s strategic location and significant deposits attract attention from global players.
Brazil aims to balance foreign influence with national interests. Proposed legislation seeks to encourage technology transfer and establish a framework for managing foreign involvement, ensuring local processing and value addition.
“We will not allow foreign entities to exploit our resources without benefiting our nation,” stated President Lula, emphasizing Brazil’s intention to keep mining-related jobs and processing within the country.