Global demand for rare earths grew by approximately 7%<\/a> in 2024, according to the International Energy Agency, with powerful nations including the United States and China rushing<\/a> to secure supplies.<\/p>\n\n\n\n Despite Brazil accounting for nearly a quarter of the world\u2019s known reserves, Latin America is still playing catch-up in rare earth mining. China dominates extraction, mainly via its domestic operations. The country accounts for almost 70% of global rare earth mine production, according to a report<\/a> published by the US Geological Survey in early 2025.<\/p>\n\n\n\n These are 17 varieties of heavy metal chemical elements distributed throughout Earth\u2019s crust. Worldwide, there are 110 million tonnes<\/a> of rare earths reserves, the US Geological Survey estimated in 2024.<\/p>\n\n\n\n The rare earths all have similar but unusual chemical and physical properties<\/a> that make them critical for many modern technologies. For example, gadolinium<\/a> is used in nuclear power reactors, while scandium<\/a> finds use in vehicle fuel cells.<\/p>\n\n\n\n Rare earth elements fall under the broader term of critical minerals, which are key ingredients for modern technology. For example, the critical mineral lithium is vital for electric vehicle batteries, while nickel is used in stainless steel.<\/p>\n<\/div><\/div><\/div>\n\n\n\n Mina\u00e7u is an example of Latin America\u2019s push to compete. When Pela Ema opened in 2024, it became the first mine<\/a> outside Asia to produce a number of rare earth elements used in magnets for electric vehicles and wind turbines.<\/p>\n\n\n\n In early November 2025, the work of the company who opened it, Serra Verde, was boosted by a USD 565 million loan<\/a> from the US International Development Finance Corporation, which dispenses federal funds for overseas development projects. Annual production of rare earths at Serra Verde is forecast<\/a> to be 6,500 tonnes by 2027.<\/p>\n\n\n\n Major deposits of rare earth elements have also been found in Chile and Argentina. These represent a significant opportunity for the region. But experts say Latin American countries should be wary of rushing to export rare earths when they could be developing full supply chains. Others warn of serious environmental damage being done to sensitive ecosystems.<\/p>\n\n\n\n According to the US Geological Survey, China accounts for approximately half<\/a> of the world\u2019s known rare earths reserves. In addition to dominating mining output, it also controls around 90%<\/a> of rare earths processing. <\/p>\n\n\n\n By contrast, Latin America\u2019s rare earths mining and refining industry remains underdeveloped, despite having healthy reserves of its own. Brazil produced only 140 tonnes of rare earths in 2023, and 20 tonnes the following year, the report added, negligible compared to the 270,000 tonnes China produced in 2024.<\/p>\n\n\n\n The latest geological studies confirm<\/a> that several Latin American countries, especially Brazil, Chile, Peru and Argentina, have deposits of global importance.<\/p>\n\n\n\n In recent months, rare earths have been at the heart of tensions between China and the US. China imposed<\/a> restrictions on exports in October, citing concerns over their use by foreign militaries. This fed into a tariff battle with the US, which is seeking to guarantee supplies of rare earths to support its own industries. An agreement<\/a> was then reached at the end of that month. In early February, the US \u201cset out to reshape the global market for critical minerals and rare earths\u201d, by hosting more than 50 countries for a meeting<\/a> designed to begin growing their collective market share.<\/p>\n\n\n\n The growing industry in Latin America, meanwhile, means it has become a more attractive region for both powers.<\/p>\n\n\n\n \u201cLatin America has regained its centrality as a supplier of critical resources,\u201d says Juliana Gonz\u00e1lez J\u00e1uregui, an international relations researcher at the Latin American Faculty of Social Sciences (Flasco) in Argentina. \u201cThis centrality is based not only on its geological endowment, but also on the fact that the main global players are seeking to diversify risks in strategic sectors dominated by a few countries.\u201d<\/p>\n\n\n\n Geopolitical competition for minerals and the need to ensure stable supply chains for strategic transition industries are central to this, she says.<\/p>\n\n\n\n Extracting rare earths is technically complex and costly, as well as hugely energy intensive. China\u2019s production dominance is anchored by its ability to produce them cheaply and at scale<\/a>. This has made it difficult for smaller operations in other countries to compete on the market. To counteract this, mining companies in other regions want a separate, higher pricing system<\/a>.<\/p>\n\n\n\n This is where Brazil may have an edge. Part of Brazil\u2019s reserves, such as those in Mina\u00e7u, are found in ionic clays. This type of deposit is simpler and cheaper<\/a> to exploit than those found in harder rock, and mining it has less of an environmental impact.<\/p>\n\n\n\n New discoveries are also attracting the attention of foreign companies. These include the \u201cdistrict-scale\u201d find announced<\/a> last year that has inflated Brazilian Rare Earths\u2019 Pel\u00e9 project in Bahia state. The Australian mining company Viridis is developing<\/a> a project called Colossus<\/a> in the municipality of Po\u00e7os de Caldas, Minas Gerais state, with estimated resources of 201 million tonnes<\/a>.<\/p>\n\n\n\n In June last year, the Brazilian government began evaluating<\/a> 56 business plans for critical mineral project, including rare earths projects, which had been submitted to try and secure support. It has set aside a fund of BRL 45.8 billion (USD 8.9 billion) to distribute among the projects chosen to receive support.<\/p>\n\n\n\n Chinese companies have taken note. China Nonferrous Metal Mining Group purchased<\/a> the Brazilian company Taboca Mining in 2024, securing access to rare earths. In the first half of 2025, Brazilian rare earth exports to China tripled<\/a> in comparison to 2024.<\/p>\n\n\n\n In Chile, Canada\u2019s Aclara Resources is partnering with the Chilean mining conglomerate, CAP, to develop the Penco Module<\/a> project at an estimated cost of USD 148 million<\/a>. This project will focus on rare earths such as dysprosium and terbium, which are again used in magnets in electric vehicles. Its aim is to produce 800-1,700 tonnes of minerals per year through a leaching process that uses recycled water. The developers claim the project will not produce tailings (residue waste) and that reforestation using native species will take place.<\/p>\n\n\n\n At least 19 deposits<\/a> have been discovered in Argentina. An environmental impact study<\/a> by the company Litica Resources is the precursor to possible extraction in the country\u2019s northern provinces.<\/p>\n\n\n\n These developments have been noticed by the European Union and the US, which have both adopted strategies to diversify the risks in their supply chains. The former has signed memoranda<\/a> with Argentina and Chile, including chapters on critical raw materials, and ratified trade agreements with the Mercosur bloc<\/a>. The latter created<\/a> the Minerals Security Partnership in 2022, made up of 14 countries and the European Union.<\/p>\n\n\n\n One of the crucial debates in Latin America is whether its reserves will simply be exported as raw materials or used to support local refining, processing and downstream control. Brazil, Argentina and Chile are all seeking to reposition themselves as industrial players. In November, the Brazilian president Luiz In\u00e1cio Lula da Silva said<\/a>: \u201cWe are not going to be exporters of critical minerals. Anyone who wants them will have to industrialise in our country so that our country can earn that money.\u201d<\/p>\n\n\n\n Constantine Karayannopoulos, a consultant in the minerals industry, tells Dialogue Earth that Brazil has \u201cprobably one of the best\u201d rare earths deposits in the world. He cautions against repeating what he sees as the mistakes made in Australia and Canada: \u201cTheir economies grew largely on the basis of extraction [of raw materials], but they did not capture the added value that the Chinese, the Koreans and the Japanese \u2013 and to a lesser extent the Europeans \u2013 did.\u201d<\/p>\n\n\n\n Ayaz Alam, director of the Geological Society of Chile (SGC<\/a>), says that while there is interest in moving towards value-added production, \u201cit is important to be realistic.\u201d<\/p>\n\n\n\n \u201cProjects have been delayed for years,\u201d Alam explains. \u201cSome companies planned to start operating in 2026 or 2027, but there are unresolved environmental issues, technologies that are not yet consolidated, and pending conflicts with local communities.\u201d<\/p>\n\n\n\n Gonz\u00e1lez believes that for Latin Americans to balance investment opportunities with the risks of technological and political dependence, they should work with major players like China to avoid maintaining \u201casymmetrical relationships\u201d. <\/p>\n\n\n\n \u201cThe balance is not \u2018with or without China\u2019 but how to insert oneself into the global system without further deepening historical vulnerabilities,\u201d she says.<\/p>\n\n\n\n One concern about this booming industry is the environmental impact. Rare earth elements are commonly mined using open-pit methods. The ore is crushed and ground, and rare-earth-bearing minerals may be concentrated using physical processes. These concentrates are then chemically treated with acids or alkalis to dissolve the rare earth elements. Then a solvent extraction process separates the different rare earths.<\/p>\n\n\n\n These processes<\/a> traditionally require large volumes of water, and carry the risk of harmful substances leaking into surrounding ecosystems.<\/p>\n\n\n\n Rare earth mines can release<\/a> radioactive elements such as thorium and uranium. The acidic waste generated during processing can pose a risk<\/a> to animal and ecosystem health. Leaching \u2013 the process of using chemical pools or pits to dissolve rare earths, thus extracting them from surrounding material \u2013 can contaminate<\/a> groundwater or surface water if there is leakage.<\/p>\n\n\n\n Francisco Valdir Silveira, director of geology and mineral resources at the Geological Survey of Brazil (SGB<\/a>), tells Dialogue Earth that existing technologies can minimise these impacts: \u201cIf environmental and sustainability protocols are followed, the impacts will be much less and can be recovered in a short period of time. There are ways to prevent them.\u201d<\/p>\n\n\n\nWinning the rare earths race<\/h2>\n\n\n\n
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<\/div>The rare earths rush<\/h2>\n\n\n\n
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<\/div>An unequal partnership?<\/h2>\n\n\n\n
The balance is not \u2018with or without China\u2019 but how to insert oneself into the global system without further deepening historical vulnerabilities<\/blockquote>Juliana Gonz\u00e1lez J\u00e1uregui, researcher at the Latin American Faculty of Social Sciences<\/cite><\/div><\/div>\n\n\n\n
What it means for the environment<\/h2>\n\n\n\n