Rare Earth Elements, Mineral Security and Strategic Opportunities for Brazil

Rare earth elements comprise 17 metals that are essential to technologies underpinning digital and energy transformation, including smartphones, data centers—fundamental to artificial intelligence and quantum computing—displays/screens, electric motors, wind turbines, and defense equipment.

Although not geologically “rare”, they are difficult to extract, costly to refine, and geographically concentrated, placing them within the category of “critical minerals” as defined under the American Energy Act of 2020.

Global Concentration and Geopolitical Risks

The current global landscape is marked by growing competition to control critical mineral supply chains, with China maintaining a dominant position. China’s predominance includes:

– the world’s largest reserves, estimated at approximately 44 million tons;

– more than 60% of global mining output;

– approximately 90% of refining and processing capacity;

– 92% of permanent magnet production which is essential for renewable energy and defense applications.

The European Union imports 98% of its rare earth elements from China; and the United States import roughly 80%.

The United States remain dependent on foreign refining and processing and have not developed sufficient domestic processing capacity to avoid shipping extracted minerals for overseas refining, primarily in China.

Regulatory Overview of Rare Earth Elements and Critical Minerals in Brazil

The legal framework governing critical minerals and rare earth elements is anchored in the Brazilian Mining Code, further regulated by Decree No. 9,406/2018.

The National Mining Agency (ANM) is responsible for granting exploration authorizations, issuing mining concessions, and supervising mining activities.

To date, there is no specific regulation applicable exclusively to critical minerals or rare earth elements, even though large-scale investments in Brazil are already underway, and the matter is being debated in Congress.

Under the current system, access to mineral rights over a free area is governed by ANM’s general regime. The obtainment of the right initially occurs through an Exploration Authorization, granted only after confirming that the area is “free” and properly delimited under the SIRGAS 2000 datum. The applicant must submit the required technical documents and a research plan. Upon completion of exploration and proof of the deposit’s feasibility, the applicant may request a Mining Concession by submitting the Economic Utilization Plan (PAE).

Environmental Impacts Associated with Critical Minerals Extraction

Rare-earth extraction and processing are among the most environmentally sensitive segments of the global mining industry. Although indispensable to modern technologies, these materials are associated with environmental externalities, including toxic waste generation and impacts on water resources and biodiversity.

Accordingly, sustainable mining practices—such as responsible water management, strict waste-control measures, revegetation of impacted areas, and respect for socio-environmental rights—are essential for any national strategy aimed at integrating Brazil into global critical-mineral supply chains.

Strategic Opportunity for Brazil

Surging demand for electric vehicles, wind turbines, artificial intelligence, high-performance computing, and defense systems is driving a global critical-minerals Supercycle. Recent indicators demonstrate:

– a sustained increase in global mining and exploration investment (2021–2025);

– expanded capital flows into the U.S., Canada, Australia, Africa, and Latin America.

Brazil holds an estimated 21 million tons of rare earth reserves—the second-largest globally—yet accounted for less than 1% of global production in 2024, with approximately 20 tons.

Applying the reserve-to-production ratio, rare earths remain virtually unexplored in Brazil, primarily due to limited geological knowledge, lack of domestic refining capacity, and the absence of a specific regulatory framework.

Recent developments, however, signal growing activity:

– Goiás – Serra Verde: U.S.-approved financing of up to USD 465 million aimed at expanding production and enhancing technological capacity at the “Pela Ema” project.

– Minas Gerais – Resouro Strategic Minerals: partnership with a U.S. company to test refining in the United States, with the possibility of future deployment of such technology in Brazil.

– Piauí – Origen Resources: intention to acquire a 3,978-hectare package of concessions, including rights of first refusal of over five additional exploration areas, potentially enabling the creation of a rare-earths mining district in the Northeast.

More recently, on August 20^th, Brazil established the Parliamentary Front for the Defense of Brazilian Rare Earths with mandates to promote national strategic debate and strengthen sovereignty over critical minerals.

9^th Round of Availability of Areas by the ANM

The ANM has opened the public consultation for the 9^th Round of Availability of Areas (9^th Round), a regulatory milestone that inaugurates an unprecedented partnership between ANM and B3 – Brasil, Bolsa, Balcão (B3).

A total of 7,000 mining areas will be offered, some of which present potential for critical minerals, including nickel, lithium, copper, and rare earth elements. The 9th Round includes areas with strategic mineral potential relevant to the energy transition and high-technology industries, such as:

– Nickel (batteries and metal alloys)

– Lithium (electric-vehicle batteries)

– Copper (electrical conductors and electronics)

– Rare earth elements (permanent magnets, renewable energy systems, defense applications, artificial intelligence, and electronics)

This initiative reinforces mining as a key driver of national competitiveness and as an enabler of alignment with global supply chains.

Our Energy & Natural Resources team at Campos Mello Advogados remains available to address any questions or provide further clarification.