Brazil's rare-earth mining sector has become a central point of strategic competition between the United States and China [1].
These minerals are essential for high-technology and defense industries, making Brazil's deposits a critical asset for global powers seeking to secure supply chains for advanced weaponry and electronics [1].
Currently, the only operational rare-earth mine in Brazil is owned by a U.S. company [1]. Despite this ownership, the mine exports the majority of its materials to China [1]. This dynamic highlights the complex interdependence of global mineral trade, where U.S. capital extracts resources that ultimately fuel Chinese industry.
Export volumes of Brazilian rare-earths saw a surge in the first half of 2025, increasing by almost 700% [1]. This spike in production occurred as both Washington and Beijing intensified efforts to influence the region's mineral policy.
Diplomatic efforts to secure these resources have increased. On July 23, 2025, Gabriel Escobar, a business officer from the U.S. Embassy, met with Raul Jungmann, a director at the Brazilian Mining Agency (IBRAM), to discuss mineral policy [2].
While the U.S. and China vie for influence, Brazil is diversifying its strategic partnerships through the BRICS bloc. On Feb. 21, 2026, Brazil and India signed a rare-earth cooperation agreement in New Delhi [3]. This move allows Brazil to expand its network of partners beyond the two superpowers, leveraging its mineral wealth to strengthen ties with other emerging economies.
Rare-earth elements are vital for the production of magnets, semiconductors, and green energy technologies [1]. Because these materials are difficult to extract and process, the control of mining sites and the destination of the exports serve as indicators of geopolitical leverage [1].
“Brazil's rare-earth mining sector has become a central point of strategic competition between the United States and China.”
The situation in Brazil illustrates a shift in the global minerals race, where ownership of a resource does not guarantee control over its destination. By exporting U.S.-mined materials to China while simultaneously signing deals with India, Brazil is practicing a policy of strategic autonomy. This allows the country to maintain economic ties with the U.S. and China while using the BRICS framework to reduce its dependence on any single superpower.
