Foreign firms flock to Brazil's rare-earth deposits, sparking ecological alarms
The United States, Australia and Canada are rapidly filing mining permits in Brazil to tap its vast rare-earth reserves, while Indigenous groups and environmentalists warn of serious ecological risks.
A review of mining permits reveals a surge in foreign interest in Brazil's rare-earth resources, second only to China in size, with subsidiaries from the United States, Australia and Canada accounting for a large share of the 2,727 applications. More than 86% of these requests were filed in the past three years, and at least a quarter target sites near protected lands or Indigenous territories, prompting concerns about toxic runoff, radioactive waste and habitat loss.
Brazil's Ministry of Mines and Energy is discussing streamlined licensing for projects deemed strategic, while political figures such as Senator Flávio Bolsonaro advocate quicker approvals. The United States has financed the acquisition of Serra Verde, Brazil's sole rare-earth producer, through a $565 million loan and a $2.8 billion purchase, backed by up to $1.6 billion in Department of Commerce support. Chinese firms have not yet filed applications but have expressed interest, and President Luiz Inacio Lula da Silva emphasized that any mining must include domestic processing to protect national interests.
Why it matters
Brazil's growing role in rare-earth supply could reshape global tech supply chains and affect vulnerable ecosystems.
In this story
