Brazil's Rare Earth Rush Draws Foreign Investors, Raises Environmental Questions
Foreign investors are driving a surge in rare earth mining applications in Brazil, raising environmental concerns near protected zones.
Brazil is emerging as a key frontier in the global race for rare earth minerals, with a new analysis revealing a sharp increase in exploration applications, many backed by foreign capital. The country holds the world's second-largest reserves of these critical elements, trailing only China, which has dominated global processing and recently restricted exports.
An examination of records from Brazil's National Mining Agency through June shows 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. Foreign-backed companies account for nearly half of all applications, with Australian and U.S. firms leading the charge. Notably, the only commercial rare earth mine in Brazil, Serra Verde, was recently acquired by a U.S.-backed company.
While Chinese firms have not yet filed exploration applications in Brazil, they are positioning themselves in the sector. State-owned China Nonferrous Metal Mining Group acquired a tin producer in the Amazon and has announced plans to study rare earth potential there. Separately, Shenghe Resources has signed agreements with Brazilian partners to pursue projects.
The surge in interest is raising environmental concerns. The analysis found that at least a quarter of the applications are within 10 kilometers of Indigenous territories or protected areas, including in the Amazon. While companies state they will not mine inside protected zones, nearby communities worry about impacts on their way of life and natural resources.
Rare earths are a group of 17 chemical elements essential for smartphones, electric vehicles, wind turbines, and defense technologies. Despite their name, they are not especially rare, but finding profitable reserves and processing them is difficult. The International Energy Agency estimated in 2022 that demand could triple by 2040 as the world shifts away from fossil fuels.
Experts warn that mining can release toxic chemicals, generate radioactive waste, cause deforestation, and pollute water sources, affecting fish populations and local ecosystems.