It is common nowadays to read about rare earths, or rare elements. Although they are used in relatively small quantities in industry, the minerals extracted are indispensable.
Currently, they have become the stage for major negotiations, including in Brazil’s relations with China and the United States.
We can say that the 20th century was defined by access to oil and the 21st century will be dictated by the dominance of critical minerals. At the epicenter of this transformation are the rare earth elements (REEs – Rare Earth Elements). They are important raw materials for providing magnetic, optical, and catalytic properties to various essential products in the economy of major countries.
For international investors and technology companies, Brazil and its reserves have become an increasingly relevant player.
In this article, we explore in depth the strategic importance of these minerals, the current stage of Exploration and Production (E&P) in Brazilian territory, and how Europartner facilitates the entry of global players into this complex and promising market.
What are Rare Earths and their importance?
The term “rare earths” refers to a group of 17 chemical elements (the 15 lanthanides, plus scandium and yttrium) that possess unique magnetic and conductive properties. They are divided into two main categories:
Light Rare Earths Elements (LREE): such as Lanthanum and Neodymium, more abundant and essential for high-power magnets.
Heavy Rare Earths Elements (HREE): such as Dysprosium and Terbium, scarcer and fundamental for high-temperature applications and defense technology.
The relevance of these elements lies in their irreplaceability. They are essential in modern technology: small quantities guarantee extraordinary performance. Without neodymium, electric vehicle motors would be massive and inefficient; without europium, high-resolution screens would not have their vibrant colors; without gadolinium, medical magnetic resonance imaging would be limited.
Rare earths and the Brazilian opportunity
The international relevance of the theme is fueled by a critical factor: market concentration. For decades, China consolidated almost a monopoly on the value chain, controlling everything from extraction to metallurgical refining.
In a scenario of trade tensions and the search for friend-shoring (trade between allied nations), OECD countries and the European Union are desperate for alternative sources, and this is where Brazil stands out.
With the third largest estimated world reserve — about 21 million tons — the country offers a stable alternative with a clean energy matrix for the processing of these minerals.
Rare earths and the E&P landscape in Brazil
Historically, Brazil focused on the export of iron ore and niobium. However, the rare earths sector is in full growth. The current focus of Brazilian Exploration and Production (E&P) is concentrated on three main fronts:
Ionic Clays
Unlike hard rock reserves (such as monazite), which require aggressive and expensive chemical processes, Brazil has vast deposits of ionic clays (such as those found in Goiás). This type of deposit allows for leaching by mild saline solutions, resulting in significantly lower extraction costs and a reduced environmental impact — an important factor for companies that follow strict ESG (Environmental, Social, and Governance) criteria.
Featured projects
Currently, projects such as Serra Verde (Goiás) and the Poços de Caldas region (Minas Gerais) are at the forefront. These projects have already passed the drilling stages and are advancing toward the commercial production of concentrates, with a special focus on Neodymium and Praseodymium (NdPr), the most coveted elements for the magnet industry.
Mineral exploration and technology
The Geological Survey of Brazil (SGB-CPRM) has intensified the mapping of new mineral provinces. In addition, there is a growing effort to reuse phosphate and iron mining tailings, which often contain significant traces of rare earths that were previously discarded.
Read: Tax reform in Brazil: what changes for foreign companies in 2026
The future of rare earths in Brazil
Brazil’s plan for the future is not just to take the ore out of the ground. The strategic goal is to move up the value chain through vertical industrialization.
The 2050 National Mining Plan
The Brazilian government, through the Ministry of Mines and Energy, has established guidelines to transform the country into a processing hub. This involves:
Incentives for refining: reduction of import tax rates for laboratory equipment and chemical separation plants.
Support for research and development: financing via BNDES and FINEP for companies that develop oxide separation technologies in Brazil.
Creation of technological Hubs: stimulating manufacturers of wind turbines and electric motors to set up near raw material sources.
The goal is clear: to stop exporting cheap concentrate to export high-purity oxides and, eventually, “Made in Brazil” permanent magnets.
Read: Starting a business in Brasil: Corporate Tax Regimes
Investment challenges and the Brazilian complexity
The mineral sector is surrounded by several regulations that tend to be updated with some frequency. That is why it is so important for the foreign entrepreneur to have a specialized consulting firm to take care of these important aspects.
See some of the challenges that the entrepreneur faces regarding the Brazilian complexity:
Environmental licensing: the process of obtaining LIs and LOs (Installation and Operating License) can be time-consuming and requires strict compliance with IBAMA and state agencies’ standards.
Tax burden and royalties: the understanding of CFEM (Financial Compensation for the Exploitation of Mineral Resources) and the details of the Brazilian tax system are fundamental for the project’s viability.
Logistics and infrastructure: transporting production from remote regions requires multimodal logistical planning.
Europartner facilitates the operation of foreign companies
For an international company, the potential of rare earths in Brazil is attractive, but operational execution is the greatest challenge. It is at this point that Europartner acts as the strategic arm to ensure that the investor focuses on the core business while we take care of the administrative complexity.
See some of the services we offer to facilitate your company’s operation in Brazil.
Regulatory and legal management
The entry of a mining company or technology company requires the constitution of a solid corporate structure. Europartner assists in the opening of the company, registration with the Central Bank for foreign capital inflows, and in the structuring of contracts that respect Brazilian Mineral Law.
Tax and accounting intelligence
Mining has specific tax regimes. Our team of specialists ensures that the company is in compliance with ancillary obligations, in addition to seeking tax optimization through regional incentives (such as SUDENE/SUDAM) and innovation incentive laws (Lei do Bem).
Human capital management (Payroll and HR)
Mining operations require qualified technical labor and, frequently, the hiring of expatriate consultants. We manage the entire payroll, benefits, and labor compliance, ensuring that the operation does not suffer from hidden liabilities.
Management BPO (Business Process Outsourcing)
We offer a complete structure: from accounts payable/receivable management to management reports in international standards (IFRS/GAAP), allowing the headquarters abroad to have full visibility of the Brazilian operation in real-time.
The rare earths market in Brazil is in full expansion. The worldwide need for diversification and investments, combined with public incentive policies, create a favorable environment for foreign investment.
For this operation to be successful, it is necessary to have a local partner who understands Brazilian bureaucracy and accounting. Europartner is ready to be that partner, transforming Brazil’s complexity into a competitive advantage for your business.
Contact Europartner’s specialists and discover how we can accelerate your operation with safety and efficiency.
