US and Brazil Discuss Rare Earth Cooperation to Bolster Supply Chains

Strategic Discussions in Salvador

Gabriel Escobar, the US Charge d'Affaires in Brazil, engaged in strategic meetings with Brazilian mining executives on October 28 or 29, 2025, during an industry event held in Salvador, Bahia. The primary focus of these discussions was to explore cooperation in the rare earth mineral sector, a move aimed at enhancing global supply chain security and reducing vulnerabilities.

Representatives from the Brazilian mining lobby group Ibram, including director Julio Nery, confirmed meetings with Escobar. Sources also indicated the presence of Australia's St George Mining, a company with rare earth projects in Brazil's Minas Gerais state.

Addressing Global Supply Chain Vulnerabilities

The United States is actively seeking to diversify its rare earth supply chains, which are currently heavily concentrated and vulnerable to disruptions. China, for instance, controls approximately 90% of global rare earth processing capacity, creating significant dependency risks for industries ranging from renewable energy to defense manufacturing.

These discussions with Brazil are part of a broader US strategy to establish alternative supply routes and secure critical minerals essential for advanced technologies. The timing of these talks also coincides with ongoing trade negotiations between the US and Brazil, which aim to address tariffs previously imposed on Brazilian goods.

Brazil's Untapped Rare Earth Potential

Brazil holds the world's second-largest known rare earth reserves, estimated at approximately 21 million tons. Despite this vast potential, the South American nation currently produces minimal quantities of rare earth elements, with output around 20 metric tons in 2024, a significant drop from 2,200 metric tons in 2016.

Efforts are underway to revive Brazil's rare earth sector, with new projects and initiatives focused on developing domestic processing capabilities. For example, Viridis Mining and Minerals and Ionic Rare Earths are constructing Latin America's first rare earth refining and recycling hub in Poços de Caldas, Minas Gerais, expected to launch operations in late 2026. The Brazilian government has also launched the National Mining Policy Council (CNPM) to propose public policies for developing domestic supply chains for critical minerals.

Implications for Future Cooperation

The discussions highlight a pivotal moment in global resource politics, as both nations recognize the urgent need for secure and diversified critical mineral supplies. US investment and technological expertise could accelerate Brazil's domestic processing capabilities, fostering mutually beneficial partnerships.

The strategic importance of rare earths is underscored by their use in:

• Military defense systems (e.g., neodymium for precision-guided munitions)
• Electric vehicle manufacturing (e.g., dysprosium for permanent magnets)
• Wind turbine generators (e.g., terbium for high-efficiency operations)
• Advanced electronics (e.g., yttrium for display technologies)