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Strategic Move to Diversify Rare Earths
The US is negotiating a rare earths partnership with Brazil to reduce dependency on Chinese mineral supplies. Meanwhile, Brazil hosts the second-largest rare earth deposits globally. As a result, both governments aim to secure supply chains for electric vehicles, defense systems, and advanced technologies.
Brazil’s Untapped Potential and Investment Plans
Brazil currently maps only 30% of its territory for minerals, limiting exploration. However, initiatives like Serra Verde’s $465 million US-backed expansion signal growth. Meanwhile, Canada’s Aclara Resources targets production later this decade. Consequently, Brazil could become a key rare earth supplier to North America.
Political and Competitive Challenges
US-Brazil collaboration must overcome European interest in rare earths, as well as past trade tensions under Trump. Nevertheless, recent diplomatic thawing improves prospects. Therefore, analysts expect a potential agreement to reinforce US strategic mineral independence and global supply security.
ScrapInsight Commentary
A US-Brazil rare earth deal could diversify global supply chains and reduce Chinese dominance. Political alignment and investment in Brazil’s untapped deposits are key. This may strengthen North American E-mobility and defense sectors while supporting a resilient circular minerals economy.
