Brazil continues to play a strategic role in the global rare earths landscape, maintaining its position as the second-largest reserve holder despite updated estimates that significantly reduced its official figures.
Recent revisions by Brazil’s National Mining Agency (ANM) adjusted the country’s rare earth reserves from 21 million tonnes to 11.4 million tonnes of total rare earth oxides. At the same time, global reserves were also revised downward, bringing the worldwide total to approximately 75 million tonnes. As a result, Brazil still holds an estimated 15% share of global reserves, second only to China.
The revision reflects improved reporting standards and alignment with international classification frameworks, enhancing the reliability and comparability of Brazil’s mineral data. While the updated figures appear lower, they provide a more accurate baseline for long-term planning and investment.
Importantly, the country’s true potential may be significantly higher. Brazil has yet to fully incorporate ionic clay rare earth deposits into its official reserve figures. Exploration activity in this segment has accelerated in recent years, particularly driven by junior mining companies, with early estimates suggesting additional resources could meaningfully expand the national reserve base.
These deposits are considered especially attractive due to their relatively lower capital intensity and operational costs, as well as their favorable composition, including higher concentrations of heavy rare earth elements and lower levels of radioactive materials.
Investment trends reflect this growing interest. Exploration spending in Brazil’s rare earth sector has increased sharply, rising from just a few million reais in 2021 to nearly R$90 million in 2024. Globally, exploration investment has also expanded, highlighting intensifying competition for critical mineral supply.
Despite its strong resource base, Brazil’s current production remains limited, representing a small share of global output. However, this is beginning to change. The start of operations at the Serra Verde project in Goiás marked a significant milestone, as it became the first ionic clay rare earth operation outside Asia. Production is expected to scale further in the coming years.
Looking ahead, industry projections suggest Brazil could significantly increase its rare earth output by the end of the decade, supported by an estimated US$2.4 billion in planned investments. This could elevate even more the country’s share of global production, strengthening its role in supply chains linked to clean energy, advanced manufacturing, and digital technologies.
However, a key challenge remains: moving beyond extraction. Currently, most rare earth processing and refining capacity is concentrated in a limited number of countries, with Brazil largely exporting intermediate products. Expanding into midstream and downstream segments will be critical to capturing greater economic value, creating skilled jobs, and strengthening industrial competitiveness.
With strong fundamentals (including a renewable energy matrix, growing infrastructure, and increasing policy support), Brazil is well positioned to develop a more integrated rare earth value chain. The next phase will depend on coordinated action across government, industry, and investors to accelerate project development and industrialisation.
Sources:
- Brasil Mineral: https://www.brasilmineral.com.br/noticias/ainda-em-segundo-lugar-nova-estimativa-traz-brasil-com-15-das-reservas-de-terras-raras
- USGS Mineral Commodity Summaries: https://www.usgs.gov/centers/national-minerals-information-center/mineral-commodity-summaries
