Brazil advances plans to process its rare earth reserves

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Brazilian states are seeking to advance initiatives aimed at installing rare earth processing plants in an effort to unlock the country’s major potential in this strategic segment.

The São Paulo state government, through the Institute of Technological Research (IPT), announced the launch and receipt of the first equipment for its first rare earth and critical mineral processing plant.

“With adequate technology for processing and separating rare earth minerals, we will be able to leverage, in the not too distant future, businesses worth several billion dollars,” said IPT CEO Anderson Correia in a statement .

The plant will complement the existing infrastructure at IPT for the production of alloys, metal powders and corrosion protection.

The center will enable simulations, testing, and validation of technological routes for separating and purifying these elements, reducing dependence on external suppliers and strengthening the country’s technological autonomy.

Brazil currently has the second-largest rare earth reserves in the world , behind only China, but still faces challenges in fully developing this potential. In the country, most of the reserves are located in Minas Gerais, a state that also plans to develop its production chain.

“Minas Gerais is the true breadbasket of rare earths in the country. We are ready to take on this challenge in the coming years. Investments are high: processing plants in this segment are budgeted at over US$2 billion each. We don’t want to be just exporters of rare earths; we want to build an industrial processing structure here in the state,” Minas Gerais vice governor Mateus Simões told BNamericas, highlighting that the state government is developing a long-term plan to develop a broad rare earth value chain.

Despite estimated reserves of 21 million tons, Brazil produced only 20 tons of rare earths in 2024, a tiny fraction of global production, which reached 390,000 tons. For comparison, China produced 270,000 tons in the same period and has reserves of 44 million tons.

The debate over rare earth elements (REEs) has gained international prominence in recent months, especially after the administration of US President Donald Trump warned of the risks posed by China’s near-total dominance in the production of these vital elements.

“Over the decades, China has developed enormous capacity for processing rare earth minerals, as well as an entire supply chain of equipment to serve this sector. For the United States and Brazil to reduce this dominance, significant investments in research and development are necessary,” José Carlos Martins, board member of Cedro Mineração and former Vale executive, told BNamericas.

According to Martins, government involvement is essential for the advancement of local rare earth processing projects, although the task takes time.

“Even in the US, where there are abundant resources, I see a scenario of at least three to four years before we begin to see a real development in the processing capacity of these minerals, because it takes time for technologies to develop,” said Martins.