Brazil holds the second-largest rare earth reserves globally, behind China. Rare earth elements are a set of 17 strategic metals used in electric vehicles, wind turbines, advanced electronics, defense systems and smartphones, as well as in high-performance permanent magnets. Despite the scale of its mineral endowment, Brazil is described as still several years from building a fully integrated rare earth industry able to compete internationally.
Specialist Fernando Landgraf, professor at the Engineering School of the University of São Paulo (POLI-USP), said mineral reserves alone do not determine whether a country can develop a rare earth capability. Speaking during FAPESP Week London in the United Kingdom, he highlighted that producing and processing rare earth carbonate is a key benchmark. Carbonate is an intermediate material used before valuable elements are separated and refined.
Carbonate supply and global magnet demand targets
Rare earth carbonate is used to produce high-strength permanent magnets. Industry estimates cited by Landgraf indicate that producing one tonne of rare earth magnets requires roughly two tonnes of rare earth carbonate. If annual global magnet demand reaches 150,000 tonnes, mining operations worldwide would need to generate about 300,000 tonnes of carbonate each year.
Brazil’s current capacity is described as limited relative to that demand. Combined output projections for leading Brazilian projects point to annual carbonate production of roughly 20,000 tonnes, which would cover less than 6% of projected global requirements. Landgraf said Brazil has started work aimed at scaling up production.
About ten rare earth mining projects are reported to be moving through different stages of development. Two projects have already entered production: operations led by Serra Verde in Goiás and ADL in Rio de Janeiro state. Landgraf said expanding output would require processing millions of tonnes of ore alongside addressing environmental and technical hurdles.
Environmental monitoring and chemical management gaps
Environmental management is identified as a major immediate risk for Brazil’s rare earth industry. Landgraf said the sector still lacks a comprehensive framework for monitoring and controlling environmental impacts from extraction and processing. He pointed to needs including chemical management, water quality controls, waste handling and long-term protection around mining sites.
The issue is linked to the fact that rare earth deposits can include associated materials requiring careful handling through production. Landgraf also said there is no universally accepted methodology defining which environmental parameters should be measured and controlled for sustainable operations. He added that greater transparency by mining companies on monitoring practices could support public confidence and speed up industry development.
Ionic clays, solvent extraction and separation constraints
The largest technological bottleneck is described as occurring after mining, during processing and separation. Rare earth-bearing ionic clays found across Brazil contain varying concentrations of the 17 rare earth elements. Each element has distinct physical properties, industrial applications and market values.
The most commercially valuable elements listed are neodymium, praseodymium, dysprosium and terbium. These metals are used in permanent magnets for electric motors, renewable energy technologies and advanced industrial systems. Efficient extraction depends on solvent extraction technologies designed to separate chemically similar materials with high precision.
Landgraf said Brazil still needs industrial-scale process parameters for these separations while managing contaminants such as aluminum oxides, iron compounds and other impurities present in ore bodies. He also noted a need to develop domestic supplies of specialized chemical extractants used during separation.
Technology access shaped by China’s processing position
The role of China in rare earth processing is presented as both a challenge and an indicator of how complex the value chain is. Decades of investment have enabled China to build expertise across mining, separation, refining and magnet manufacturing stages. Landgraf said much of this knowledge remains difficult to access.
He added that China publishes relatively limited technical information on critical aspects of rare earth processing, which makes technology transfer difficult. Partnerships with North American or European institutions were mentioned as potential alternatives, but Landgraf said such collaborations increasingly include geopolitical considerations alongside scientific cooperation.
UK research links on magnets and environmental assessment
Brazil’s international cooperation efforts include links with the United Kingdom. Landgraf identified the UK as a potentially valuable partner for magnet manufacturing and environmental monitoring work. He said British researchers associated with institutions in Birmingham have contributed to advances in permanent magnet technologies.
Brazilian researchers have also identified UK expertise in environmental assessment and mining sustainability. These areas were described as aligning with Brazil’s current development priorities for the sector. Strengthening scientific partnerships was presented as a way to accelerate progress toward establishing a competitive rare earth industry.
National institutes supporting rare earth magnet production capabilities
Brazil has invested in research and skills development focused on rare earth magnets. One initiative highlighted was the creation of the National Institute of Science and Technology for the Processing and Application of Rare Earth Magnets (INCT Pátria), established in 2014. The program brought together researchers across Brazil with the objective of mastering the entire rare earth magnet production cycle.
A later expansion was described through the launch of the National Institute of Science and Technology in Rare Earth-Based Advanced Materials (INCT Matéria). The initiative brings together 15 institutions, focused on developing applications for rare earth materials supporting the global energy transition.
CETEM, IPT, IPEN and UFSC research on separation and magnet routes
A range of Brazilian institutions are working on different parts of rare earth processing and manufacturing. Scientists at the Mineral Technology Center (CETEM), the Nuclear Technology Development Center and the University of São Paulo are investigating advanced separation techniques aimed at improving efficiency and reducing costs.
The Institute for Technological Research (IPT) was cited for progress producing metallic neodymium from rare earth oxides through high-temperature electrolysis. The work was linked to steps toward manufacturing iron-neodymium-boron alloys used in high-performance permanent magnets.
Additional advances were reported at the Institute of Energy and Nuclear Research (IPEN) and the Federal University of Santa Catarina (UFSC). Researchers there have focused on powder metallurgy and magnet production technologies.
Additive manufacturing trials in Santa Catarina
Additive manufacturing is described as an area under development using 3D printing approaches for producing rare earth magnets. Researchers in Santa Catarina are exploring methods based on advanced 3D printing techniques. The technology is described as challenging and requiring significant refinement before it can be scaled or commercialized.
SENAI-led magnet factory-laboratory planned for Minas Gerais
A magnet factory-laboratory under development is reported in Minas Gerais. The facility is being established under SENAI’s Innovation and Technology Center leadership with support from UFSC, and it has already been completed. It is expected to play a role in developing domestic manufacturing expertise.
Landgraf estimated it will take about two years for researchers and engineers to master production techniques capable of meeting commercial quality standards. He described this learning process as requiring patience, investment and continuous work during ramp-up.
