Rainbow Rare Earths and U.S. fertiliser producer Mosaic have launched a pre-feasibility study for a rare earth recovery project at Uberaba, Brazil, targeting magnet metals from an existing phosphate-processing waste stream. Rather than developing a conventional rare earth mine, the project would recover rare earth elements from phosphogypsum produced by Mosaic’s existing phosphate operations. The companies are evaluating a processing rate of approximately 2.7 million tonnes of phosphogypsum per year over an initial 30-year operating period.
Rare Earth Products and Processing Plans
The proposed operation would produce separated neodymium-praseodymium (NdPr) oxide, a material used in permanent magnets for electric vehicles, wind turbines and industrial motors. The project would also produce a mixed carbonate containing medium and heavy rare earth elements.
An earlier economic assessment estimated a post-tax net present value of approximately €790 million and an internal rate of return of about 45%. The pre-feasibility study is scheduled for completion in the second half of 2027. It is expected to establish more detailed assumptions for capital expenditure, operating costs and process design.
Existing Infrastructure and European Supply Links
The Uberaba project would use an existing industrial setting and a large above-ground phosphogypsum resource. This could reduce some of the permitting, mining and waste-management requirements associated with conventional rare earth developments. The project is being developed as a potential source of magnet rare earths outside China, giving it relevance to European supply chains. London-listed Rainbow is pursuing non-Chinese sources of these materials as the EU seeks to diversify supplies serving the automotive, renewable energy and defence industries.
No new EU, European Investment Bank or European government funding was announced with the pre-feasibility study. The project’s European relevance is therefore linked to potential future supply, ownership and supply diversification rather than confirmed European public financing. The development remains at the study stage and is not a financed project. Key subsequent steps include completing the pre-feasibility study, demonstrating recovery performance at commercial scale and converting potential customer interest into binding financing or offtake agreements.
