Global Race for Rare Earths Puts Brazil's Mineral Wealth in Spotlight
Brazil sees a surge in rare earth exploration, driven by foreign firms seeking alternatives to China, but environmental and sovereignty concerns remain.
Brazil is emerging as a key battleground in the global race for rare earth minerals, with a surge in exploration applications driven largely by foreign investors seeking alternatives to China's dominance.
An analysis of national mining records through June reveals that over 86% of all rare earth exploration applications were filed in the last three years, including 268 in the first half of 2026 alone. This interest is fueled by the minerals' critical role in technologies ranging from smartphones and defense systems to wind turbines and electric vehicle motors.
The International Energy Agency projects that demand for these minerals could triple by 2040 as the world transitions away from fossil fuels. With China controlling nearly half of the world's reserves and dominating processing, Brazil's second-largest reserves have become increasingly attractive, especially after Beijing restricted exports last year.
Foreign companies, particularly from Australia and the United States, account for more than four in ten applications. Notable deals include the acquisition of Serra Verde, Brazil's only commercial rare earth producer, by a U.S.-backed firm. While Chinese companies have not filed exploration applications, they are positioning themselves through acquisitions and partnerships, including a deal involving state-owned China Nonferrous Metal Mining Group.
The rush for minerals is raising environmental concerns. At least a quarter of the applications overlap with or lie within 10 kilometers of protected areas and Indigenous territories, including parts of the Amazon. Experts warn that mining could release toxic chemicals, generate radioactive waste, and cause deforestation and water pollution.
In Goias state, a small Afro-Brazilian community finds itself near claims held by Canadian firm Aclara Resources, which has received U.S. development financing. While the company says no mining will occur on the community's territory, residents fear potential impacts on local springs and wildlife.
Brazilian lawmakers are responding to these concerns. President Luiz Inacio Lula da Silva has backed proposed legislation to establish a federal policy on critical minerals, requiring technology transfer and domestic processing. "We will not allow anyone from outside to come here and exploit our mineral resources," Lula said, emphasizing the need for processing and transformation to happen within Brazil.