Europe eyes Brazil’s rare earth rush

The European Union is stepping up efforts to secure access to Brazil’s rare earth reserves as Brussels seeks alternatives to Chinese supply chains and responds to growing US interest in the sector, according to diplomats and EU officials.

European Commissioner for International Partnerships Jozef Síkela will visit Brazil from June 18-24 to discuss investment projects and supply agreements tied to critical minerals, Estadão reported.

The visit comes as Europe looks to reduce dependence on China, which dominates rare earth processing, while also countering Washington’s push into South America’s mineral sector. Brazil is estimated to hold around 21mn tonnes of rare earth reserves, or roughly 23% of global resources.

Síkela will travel to Minas Gerais, São Paulo, Rio de Janeiro and Brasília alongside representatives from the European Investment Bank and the EU’s Global Gateway initiative.

On June 20, he is scheduled to visit the Colossus rare earth project in Poços de Caldas, operated by Australian miner Viridis Mining and Minerals.

European officials say the bloc can offer “reliable” and “stable” partnerships, alongside investment, technology and training. They also want part of the production chain located in Brazil rather than exporting raw materials directly to China.

“This is fundamental to our digital and clean transitions, as well as to our strategic independence in a world where minerals tend to become an instrument of coercion,” Ursula von der Leyen said earlier this year.

Brazilian officials have indicated any deal must include processing and refining investment inside Brazil.

This comes as the EU’s trade agreement with the South American Mercosur bloc — of which Brazil is the most important member — entered into force provisionally on May 1 after 25 years of fraught negotiations, granting European companies improved access to South American markets and resources, including rare earths critical for advanced manufacturing.