US-Brazil Cooperation Intensifies to Enhance Rare Earth Mineral Value Chain in Brazil

Business and government leaders from the United States have called for increased cooperation with Brazil to accelerate investments in the extraction and processing of rare earth elements and critical minerals. This appeal was made during the Brazil-US Forum held on October 18, 2026, organized by the US embassy, consulates in Brazil, Amcham Brazil, Citi, and the US Chamber of Commerce, with support from the Brazilian Mining Institute (Ibram).

The United States government expressed strong support for Brazilian mining projects targeting critical minerals, emphasizing financial backing not only for mining extraction but also for intermediate and advanced production stages such as refining, separation, and manufacturing of high-value products. Washington aims to reduce global dependence on China, which currently dominates over 90% of the world's permanent magnet production and controls many complex stages of the mineral supply chain, including chemical separation and refining.

A significant recent development is the signing of a memorandum of understanding between the state of Goiás and the United States on October 18 to develop complete industrial stages within Brazil. These stages include rare earth separation, metal alloy production, and manufacturing neodymium permanent magnets, which are strategically essential for applications such as electric vehicles and defense.

While producing final goods like magnets and batteries domestically remains a distant challenge due to the need for new productive sectors and technology largely found in Asia, there are promising projects advancing value addition in Brazil. Notably, the Brazilian Nickel project in Piauí is set to produce mixed hydroxide precipitate (MHP), an important intermediate for global battery supply chains. Additionally, St George Mining's Araxá project seeks to innovate by extracting niobium and rare earths from the same deposit, with metallurgical tests underway to optimize processing methods.

The United States has already invested more than $600 million in Brazil’s critical minerals sector, with intentions to inject additional billions to foster vertical integration and development of the supply chain within Brazil.

These cooperative efforts reflect a strategic push to reorganize critical mineral supply chains away from Chinese dominance and to enhance Brazil's role as a key player in producing essential materials for emerging technologies.