Brazil possesses the second largest reserve of rare earth elements in the world, trailing only China [1, 2].
This positioning places Brazil at the center of the global supply chain for minerals essential to high-tech electronics, renewable energy, and advanced defense systems. As nations seek to diversify their sources of these critical materials, Brazil's reserves offer a strategic alternative to Chinese dominance.
Pablo Cesário, interim president of the Brazilian Mining Institute (IBRAM), said the scale of these reserves was significant in reports published in April 2026 [1]. He said the country is currently in a unique position to meet global demand for these minerals, provided it can overcome structural hurdles.
Cesário said that having the resources is not enough to ensure economic gain. The country must move beyond simple extraction to create a more sophisticated industrial base. The development of a national production chain is necessary to capture more value from the minerals before they are exported [1].
"Precisamos trabalhar em tecnologia e encadeamento produtivo no Brasil," Cesário said [1].
While Brazil holds a lead in rare earth minerals, other South American nations are also reporting significant energy reserves. Argentina, for example, holds the second largest shale gas reserve in the world, estimated at 16.2 billion barrels [3].
The push for rare earth development in Brazil comes as the global transition to green energy accelerates. Rare earth elements are critical components in the permanent magnets used in electric vehicle motors and wind turbines. Without a domestic processing capability, Brazil risks remaining a raw material exporter while importing the high-value finished products it helps create [1].
“Brazil possesses the second largest reserve of rare earth elements in the world, trailing only China.”
Brazil's status as a top-tier holder of rare earth elements provides it with significant geopolitical leverage. However, the gap between possessing raw reserves and achieving industrial autonomy is wide. If Brazil successfully develops the domestic technology and production chains mentioned by Cesário, it could transition from a commodity supplier to a global hub for green technology manufacturing.
