Brazil possesses the second-largest rare earth reserves on the planet, trailing only China. Yet despite this enormous geological advantage, the country remains years away from establishing a fully integrated rare earth industry capable of competing on the global stage.
Rare earth elements, a group of 17 strategic metals, are essential for manufacturing technologies that power the modern economy. They are used in electric vehicles, wind turbines, advanced electronics, defense systems, smartphones, and the high-performance permanent magnets that underpin the global energy transition.
Experts argue that Brazil’s challenge is no longer finding the resources. The real obstacle is transforming mineral potential into a competitive industrial supply chain that can produce refined materials and advanced magnet technologies domestically.
Building a Rare Earth Industry Requires More Than Mining
According to leading Brazilian rare earth specialist Fernando Landgraf, professor at the Engineering School of the University of São Paulo (POLI-USP), mineral reserves alone do not guarantee success.
Speaking during FAPESP Week London, an international scientific collaboration event held in the United Kingdom, Landgraf emphasized that the true measure of a country’s rare earth capability lies in its ability to produce and process rare earth carbonate, the intermediate material required before the valuable elements can be separated and refined.
Rare earth carbonate serves as the foundation for producing high-strength permanent magnets, which have become a strategic focus in the growing technological competition between major global powers. As global demand accelerates, the challenge is immense. Industry estimates suggest that producing one tonne of rare earth magnets requires roughly two tonnes of rare earth carbonate. If annual global magnet demand reaches 150,000 tonnes, mining operations worldwide would need to generate approximately 300,000 tonnes of carbonate each year.
Brazil’s Current Production Capacity Remains Limited
Although Brazil’s resource base is substantial, current production capacity remains relatively modest. Combined output projections from the country’s leading rare earth projects indicate annual carbonate production of roughly 20,000 tonnes, enough to satisfy less than 6% of projected global demand. The country has begun laying the groundwork for future expansion.
According to Landgraf, approximately ten rare earth mining projects are currently advancing through various stages of development. Two projects have already entered production, including operations led by Serra Verde in Goiás and ADL in Rio de Janeiro state.
These projects represent important milestones in Brazil’s efforts to establish itself as a meaningful participant in the global rare earth market. To significantly increase production, however, companies will need to process millions of tonnes of ore while simultaneously overcoming major environmental and technical hurdles.
Environmental Challenges Remain the Biggest Immediate Risk
Among the many barriers facing Brazil’s rare earth industry, environmental management stands out as one of the most significant. Landgraf believes the sector still lacks a comprehensive framework for monitoring and controlling the environmental impacts associated with rare earth extraction and processing.
Mining companies must address questions related to chemical management, water quality, waste handling, and long-term environmental protection around mining sites.
The challenge is particularly important because rare earth deposits often contain associated materials that require careful handling throughout the production process. According to the researcher, there is still no universally accepted methodology defining exactly which environmental parameters should be measured and controlled to ensure sustainable operations. Greater transparency from mining companies regarding environmental monitoring practices could help strengthen public confidence and accelerate industry development.
Separating Rare Earth Elements Is the Industry’s Greatest Technological Bottleneck
While mining is essential, the true value of rare earths is unlocked only after complex processing and separation.
This stage represents the largest technological challenge facing Brazil.
Rare earth-bearing ionic clays discovered throughout Brazil contain varying concentrations of the 17 different rare earth elements. Each element possesses unique physical properties, industrial applications, and market values.
The most commercially valuable elements include:
- Neodymium
- Praseodymium
- Dysprosium
- Terbium
These metals are critical for manufacturing powerful permanent magnets used in electric motors, renewable energy technologies, and advanced industrial systems. Extracting these elements efficiently requires sophisticated solvent extraction technologies capable of separating chemically similar materials with exceptional precision.
Brazil must still establish industrial-scale parameters for these processes while learning how to manage contaminants such as aluminum oxides, iron compounds, and other impurities present within ore bodies. The country also faces the challenge of developing domestic supplies of specialized chemical extractants required during separation.
China’s Dominance Highlights Brazil’s Learning Curve
China’s overwhelming leadership in rare earth processing presents both a challenge and a reminder of the complexity involved. Decades of investment have allowed China to build unparalleled expertise across every stage of the rare earth value chain, from mining and separation to refining and magnet manufacturing. Much of this knowledge remains difficult to access.
According to Landgraf, China publishes relatively limited technical information regarding critical aspects of rare earth processing, making technology transfer difficult.
Partnerships with North American or European institutions may offer alternatives, but such collaborations increasingly involve geopolitical considerations in addition to scientific cooperation. As nations compete for strategic control of critical mineral supply chains, access to rare earth processing knowledge has become an important economic and national security issue.
United Kingdom Collaboration Could Accelerate Progress
While challenges remain, Brazil sees opportunities for international cooperation. Landgraf identified the United Kingdom as a potentially valuable partner, particularly in magnet manufacturing and environmental monitoring. British researchers, especially those associated with institutions in Birmingham, have contributed significantly to advancements in permanent magnet technologies.
At the same time, Brazilian researchers have identified British expertise in environmental assessment and mining sustainability—two areas that align closely with Brazil’s current development priorities. Strengthening these scientific partnerships could help accelerate the country’s progress toward establishing a competitive rare earth industry.
Brazil Is Building a National Rare Earth Knowledge Base
Despite being in the early stages of industry development, Brazil has already invested heavily in research and skills development. One of the country’s most significant initiatives was the creation of the National Institute of Science and Technology for the Processing and Application of Rare Earth Magnets (INCT Pátria), established in 2014.
The program united researchers from across Brazil with the objective of mastering the entire rare earth magnet production cycle. More recently, the launch of the National Institute of Science and Technology in Rare Earth-Based Advanced Materials (INCT Matéria) expanded these efforts further. The initiative brings together 15 institutions focused on developing applications for rare earth materials that support the global energy transition.
Research Centers Advance Critical Processing Technologies
Several Brazilian research institutions are actively working on different aspects of rare earth processing and manufacturing.
Scientists at the Mineral Technology Center (CETEM), the Nuclear Technology Development Center, and the University of São Paulo are investigating advanced separation techniques aimed at improving efficiency and reducing costs. Meanwhile, researchers at the Institute for Technological Research (IPT) have achieved progress in producing metallic neodymium from rare earth oxides through high-temperature electrolysis.
These efforts represent a critical step toward manufacturing iron-neodymium-boron alloys, the foundation of many high-performance permanent magnets. Additional advances have been made at the Institute of Energy and Nuclear Research (IPEN) and the Federal University of Santa Catarina (UFSC), where researchers have focused on powder metallurgy and magnet production technologies.
3D Printing and New Manufacturing Technologies Offer Future Potential
One of the most innovative areas of development involves the use of additive manufacturing technologies. Researchers in Santa Catarina are exploring methods for producing rare earth magnets through advanced 3D printing techniques.
While the technology remains challenging and requires significant refinement, it represents a potential pathway toward more flexible and efficient magnet production in the future. If successful, additive manufacturing could provide Brazil with a competitive advantage in specialized magnet applications and advanced industrial manufacturing.
A New Magnet Factory Marks a Critical Milestone
Perhaps the most tangible sign of progress is emerging in Minas Gerais, where a rare earth magnet factory-laboratory is being established under the leadership of SENAI’s Innovation and Technology Center, with support from UFSC. The facility has already been completed and is expected to play a key role in developing domestic manufacturing expertise.
Landgraf estimates that it will take approximately two years for researchers and engineers to fully master production techniques capable of meeting commercial quality standards. The process, he notes, is one that requires patience, investment, and continuous learning.
Brazil’s Rare Earth Future Depends on Technology, Sustainability, and Industrial Development
Brazil possesses the geological resources necessary to become a major player in the global rare earth market. However, mineral reserves alone are not enough.
Success will depend on the country’s ability to build environmentally responsible mining operations, develop advanced separation technologies, master magnet manufacturing, and strengthen scientific collaboration with international partners. As global demand for critical minerals continues to surge, Brazil has an opportunity to transform itself from a resource holder into a strategic supplier of high-value rare earth products. Achieving that goal will require overcoming significant environmental and technological challenges, but the foundations for a competitive domestic rare earth industry are gradually taking shape.
