Brazil is becoming a key partner for Europe’s efforts to diversify rare-earth supply chains, with discussions focused on mineral processing, technology cooperation and domestic value creation rather than only raw material exports. The partnership focus is centred on Viridis Mining and Minerals’ rare-earth platform in Poços de Caldas, Minas Gerais, where the company is developing a project designed to supply processed rare-earth products to international markets.
The European Union is seeking strategic critical-minerals partnerships with Brazil, with EU Commissioner for International Partnerships Jozef Sikela visiting Viridis’ rare-earth research and processing centre in June. Viridis plans to invest approximately $360 million in a commercial processing facility capable of producing 15,000 tonnes per year of mixed rare-earth carbonate from 2028. The project covers 228.62 square kilometres of licences in Minas Gerais.
European Partnership Targets Rare-Earth Processing Capacity
Viridis has signed a non-binding letter of intent with Solvay, which could develop into a broader cooperation arrangement involving the supply of mixed rare-earth carbonate and processing support. The potential partnership aligns with European objectives to establish rare-earth supply chains outside China, with greater emphasis on processing capabilities, supply traceability and industrial partnerships.
Rare earths are used in electric vehicles, wind turbines, robotics, electronics and defence applications. China’s leading position in rare-earth separation and refining remains a central challenge for supply diversification efforts. Brazil offers Europe access to rare-earth resources while also seeking industrial development opportunities that extend beyond mineral extraction.
Brazil Seeks Domestic Value Creation
Brazil’s approach to critical minerals includes efforts to develop local processing capacity, technical expertise and industrial capabilities. The country is seeking greater participation in the value chain by encouraging activities that create jobs and technological capacity within Brazil.
For European partners, cooperation may involve more than purchasing mineral products. Potential areas include technology transfer, financing, environmental standards, workforce training, refining expertise and downstream processing links between Brazil and Europe. The Viridis project represents a model based on combining mineral supply with processing infrastructure and industrial cooperation.
Project Development Faces Technical and Financing Challenges
Rare-earth projects require complex development pathways involving geology, chemical processing, customer qualification, environmental approvals and specialised market structures. Viridis will need to advance project financing, secure customer commitments, demonstrate technical performance and maintain permitting progress before commercial production can begin.
The production of mixed rare-earth carbonate represents an intermediate stage of the value chain, while higher-value activities include separation of individual rare-earth elements and magnet manufacturing. The potential Solvay relationship provides a processing-focused element to the project by linking the development with industrial expertise.
Rare-Earth Supply Chain Expansion Beyond China
Brazil’s rare-earth opportunity is positioned around its resource base and location outside China’s dominant supply chain, while Europe is seeking alternative sources for critical materials. The development of the $360 million processing plant will depend on final funding arrangements, offtake agreements, technical execution and regulatory approvals. The Viridis platform is part of a broader effort to establish a rare-earth supply chain connecting Brazilian resources with European industrial demand through mining, processing and technology cooperation.
