Brazil Emerges as New Hub for Rare Earth Mining Amid U.S. and Western Investment

National Mining Agency records through June show a sharp rise in rare-earth exploration permits. Of the 2,727 applications, 42 % were filed by subsidiaries of foreign firms. More than 86 % were submitted in the past three years, including 268 in the first half of 2026. Australian companies filed 695 applications and U.S. firms 347.

UsNews and World Report

Brazil holds the world’s second-largest rare-earth reserves—about 21 million metric tons—behind China’s 44 million. After China limited exports, Western governments have looked to Brazil. The United States backed the acquisition of Brazil’s only commercial producer, Serra Verde, in a $2.8 billion deal finalized in June, with up to $1.6 billion in additional support.

The US and others turn to Brazil for rare earths, raising environmental concerns

• Total applications: 2,727 (42 % foreign-backed).

The US and others turn to Brazil for rare earths, raising environmental concerns

• Recent filings: 268 permits in H1 2026.

The US and others turn to Brazil for rare earths, raising environmental concerns

• Geographic overlap: At least 25 % of applications lie within 10 km of protected areas or Indigenous territories.

UsNews and World Report

• Key projects: Serra Verde supplies four magnetic rare-earth elements and secured a $565 million financing package from the U.S. International Development Finance Corporation.

The US and others turn to Brazil for rare earths, raising environmental concerns

• Success rate: Roughly 100 of every 1,000 prospects justify drilling; only two become viable projects.

The US and others turn to Brazil for rare earths, raising environmental concerns

President Luiz Inácio Lula da Silva said the Senate will advance legislation to keep mining jobs in Brazil and require domestic processing. He stressed national control while acknowledging the need for foreign investment with technology transfer.

UsNews and World Report

Thras Moraitis, CEO of Serra Verde Group, called the acquisition a “critical inflection point” for the Western rare-earth sector.

The US and others turn to Brazil for rare earths, raising environmental concerns

Leonardo Durans of Brazil’s Trade Ministry said Brazil will not take sides in the U.S.–China dispute, even as Chinese firms explore partnerships.

The US and others turn to Brazil for rare earths, raising environmental concerns

Gilvan Magalhães, president of the Família Magalhães residents’ association in Goiás, warned that mining “always leaves a footprint.” Residents fear operations slated for as early as 2028 could contaminate springs, harm wildlife, and degrade water quality.

The US and others turn to Brazil for rare earths, raising environmental concerns

Field observations in Goiás show small Afro-Brazilian communities near proposed zones. Researchers note that rare-earth extraction can produce toxic chemicals and radioactive waste, affecting deforestation, air quality, noise, and aquatic ecosystems.

The US and others turn to Brazil for rare earths, raising environmental concerns

No source provides definitive timelines for environmental impact assessments or for the processing-capacity transfers required by pending legislation. The extent of Chinese involvement beyond expressed interest remains unclear.

UsNews and World Report

• “The challenge today is that China dominates processing and refining,” — Sydney-based Brazilian

The US and others turn to Brazil for rare earths, raising environmental concerns

• “We will not allow anyone from outside to come here and exploit our mineral resources, because we want their processing and transformation to happen here,” — Luiz Inácio Lula

The US and others turn to Brazil for rare earths, raising environmental concerns

• “And out of those 100, you’ll end up with only two good projects. The success rate is not very high,” — Julio Nery, Brazilian Mining Institute

The US and others turn to Brazil for rare earths, raising environmental concerns

• “We recognize that the critical minerals environment at the moment is quite concentrated,” — Sophie Davies, Australia’s ambassador to Brazil

The US and others turn to Brazil for rare earths, raising environmental concerns

• “The Western rare earth sector stands at a critical inflection point, as governments and strategic industries urgently seek reliable sources of critical rare earths — particularly scarce heavy rare earths,” — Thras Moraitis

The US and others turn to Brazil for rare earths, raising environmental concerns

Brazil’s Senate is expected to vote on the proposed critical-minerals law in the coming weeks, a measure that would require foreign investors to share processing technology with Brazilian partners. The outcome will shape the balance between attracting Western capital and safeguarding environmental and Indigenous interests.

UsNews and World Report