Rainbow Rare Earths and U.S. fertiliser producer Mosaic have launched a pre-feasibility study (PFS) for a rare earth recovery project at Uberaba in Brazil, advancing plans to produce magnet-related rare earth materials outside China and potentially supply diversified global and European industrial markets. The project is based on the recovery of rare earth elements from phosphogypsum, a by-product of Mosaic’s existing phosphate operations. Unlike conventional rare earth developments, the proposed facility would use an existing above-ground industrial resource rather than opening a new mine.
2.7 Million Tonnes of Phosphogypsum Targeted Annually
Rainbow and Mosaic are evaluating a processing operation capable of treating approximately 2.7 million tonnes of phosphogypsum per year over an initial 30-year operating period. The proposed product mix includes separated neodymium-praseodymium (NdPr) oxide, a key material used in permanent magnets for electric vehicles, wind turbines and industrial motors.
The project would also produce a mixed carbonate containing medium and heavy rare earth elements, expanding the range of rare earth materials potentially recovered from the phosphogypsum resource.
Earlier Study Indicated Strong Project Economics
An earlier economic assessment estimated a post-tax net present value of about €790 million and an internal rate of return of approximately 45%.
The new pre-feasibility study is scheduled for completion in the second half of 2027. It is expected to provide more detailed estimates for capital expenditure, operating costs and processing technology, helping define the technical and financial parameters for any future development decision. The project remains at the study stage and has not been presented as a financed development.
Rare Earth Supply Chain Diversification
The Uberaba project has potential significance for Europe because Rainbow Rare Earths, listed in London, is pursuing alternative sources of magnet rare earths at a time when the European Union is seeking to diversify supplies used across the automotive, renewable energy and defence sectors.
The use of an existing industrial resource could also provide advantages compared with conventional rare earth mining projects. Uberaba has established industrial infrastructure and a substantial above-ground phosphogypsum resource, potentially limiting some of the mining, permitting and waste-management requirements normally associated with developing a new rare earth mine.
No New European Public Funding Announced
No new EU, European Investment Bank or European government financing was announced in connection with the pre-feasibility study. The project’s European relevance therefore currently stems from its potential contribution to supply diversification and future access to rare earth materials rather than from confirmed European public funding.
The next development milestones will include completion of the PFS, confirmation of recovery performance at commercial scale and progress toward potential binding offtake and financing agreements. These steps will determine whether the Uberaba concept can advance from technical studies toward a commercially financed rare earth recovery operation.
