Full Breakdown
EU Partners with Brazil to Secure Rare-Earth Supply Chain
6/23/2026, 1:47:43 AM
EU-Brazil Strategic Partnership on Rare Earths
On 22 June 2024, EU Commissioner Jozef Sikela visited Viridis Mining and Minerals’ rare-earth processing centre in Poços de Caldas, Minas Gerais, Brazil, and announced a partnership that pairs EU purchase agreements with Brazilian investment in refining, technology transfer and higher-value processing of critical minerals.
Global Race for Critical Minerals
The deal responds to a global push to reduce dependence on China, the dominant rare-earth supplier, after supply shocks from the pandemic and the Ukraine war highlighted the need for diversified sources for electric-vehicle, renewable-energy and defence materials.
Principal Actors
Key actors are EU Commissioner Jozef Sikela, Viridis Mining and Minerals (Australian-listed) led by CEO Rafael Moreno, Belgian chemicals firm Solvay, and the Brazilian government, which is negotiating a memorandum of understanding with the EU. Brazil ranks second globally in critical-mineral reserves and is the EU’s top Latin-American partner.
Timeline of Key Milestones
Key milestones include the May 2024 pilot plant inauguration, the 22 June 2024 partnership announcement, a target July 2024 finalisation of a Solvay letter of intent, and a planned 2028 commercial plant launch.
Project Scale and Numbers
The pilot processes 100 kg of ore per hour, yielding up to 2.92 kg of mixed rare-earth carbonate (MREC) annually. The commercial plant aims for 15,000 tons of MREC per year across 228.62 km² of licences in Minas Gerais.
Why It Matters / Impact
The partnership secures EU access to rare-earths, lowers geopolitical risk, and helps Brazil shift from low-margin ore exports to higher-margin processed products, creating jobs and fostering technology transfer under EU sustainability standards.
Official Statements & Responses
Sikela said the EU’s approach emphasises sustainable business, job creation and knowledge transfer, and that Brazil’s move up the value chain matches both sides’ objectives. Moreno noted that talks are advanced, with a Solvay deal expected by July and a broader MoU under negotiation.
Criticism & Opposition
The Reuters articles do not cite any organized criticism or dissenting perspectives on the partnership.
Conflicting Reports & Gaps
Details of the EU-Brazil memorandum and the precise terms of the Solvay supply agreement remain undisclosed, leaving a gap in publicly available information.
Verbatim Quotes
- “What is extremely important is that also Brazil moves from the like a low-margin business so basically that the value is created here in the country,” — Jozef Sikela, EU Commissioner for International Partnerships
- “And that is why I like this particular project (Viridis) so much, because it basically delivers on objectives: it creates jobs, creates new partnerships, brings new technologies, education and knowledge transfer, all based on the most advanced environmental, social and technical ?standards,” — Jozef Sikela
- “our value proposition is more beneficial than what these others want,” — Jozef Sikela
- “When asked about the landscape, Sikela said the European strategy aims to reduce "dependencies" across global supply chains, following shocks such as the pandemic and the war in Ukraine, stressing the issue extends beyond China alone.” across global supply chains.” — Jozef Sikela
Future Outlook
The parties aim to finalise the Solvay letter of intent by July, sign the EU-Brazil MoU, and start building the 2028 plant. They also plan to explore cooperation on other Brazilian critical minerals such as nickel and lithium.
