The US and others turn to Brazil for rare earths, raising environmental concerns
Summary
Brazil is becoming an important source of rare earth minerals, which are vital for technology and clean energy. Many foreign companies, especially from the U.S., Australia, and Canada, are investing in Brazil's rare earth mining, but there are concerns about environmental damage and effects on Indigenous communities.Key Facts
- Brazil has the second-largest rare earth mineral reserves in the world, after China.
- Rare earth minerals are used in electronics, magnets, batteries, wind turbines, and electric vehicle motors.
- Over 42% of mining exploration applications in Brazil come from foreign companies or investors.
- Most rare earth exploration applications have been filed in the last three years, with a sharp rise recently.
- The U.S. increased investment in Brazil’s rare earth sector after China limited rare earth exports to the U.S. in 2025.
- Brazil’s only commercial rare earth producer, Serra Verde Mining, was bought by a company partially owned by the U.S. government.
- Mining projects may threaten areas in the Amazon rainforest and affect Indigenous and local communities.
- Demand for rare earth minerals is expected to grow at least three times by 2040 due to a shift to renewable energy and digital technologies.
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