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Brazil's Rare Earth Rush: A Global Tech Race
20 Aug
Summary
- Brazil holds the world's second-largest rare earth reserves.
- Foreign investors drive over 40% of rare earth exploration applications.
- New mining projects risk environmental and community impacts.
Brazil's substantial rare earth mineral reserves, second only to China, are attracting significant global interest as nations seek alternatives to Chinese supply chains. Applications for rare earth exploration have surged in recent years, with a notable increase in the first half of 2026.
Foreign investors, especially from Australia and the U.S., are leading this exploration drive, accounting for more than four in 10 applications. This growing interest, however, is accompanied by environmental concerns, as a quarter of proposed mining sites are near protected areas and Indigenous territories, potentially leading to deforestation and water contamination.
Brazil is considering legislative measures to manage foreign influence and ensure that technology transfer and processing capabilities remain within the country. President Lula da Silva has emphasized national interests, aiming to process and transform these valuable resources domestically, rather than allowing external exploitation.
