Brazil holds approximately 25% [1] of the world's rare earth mineral reserves but currently explores less than 1% [1] of that potential.
This disparity represents a significant missed opportunity for the nation to influence the global supply chain for critical minerals. Rare earth elements are essential for high-tech manufacturing and green energy transitions, meaning Brazil's inability to extract these resources limits its economic leverage in the global market.
Philipe Moura, the strategy director at Eurasia, described the country as a "sleeping giant" regarding rare earths during an interview on CNN Prime Time [1]. Moura said the low level of participation in the production chain is the result of structural bottlenecks and a lack of government policies to encourage exploration.
According to Moura, the current state of the industry is a result of missing national frameworks that would incentivize the development of a domestic production chain [1]. He said that without these policies, the vast reserves remain largely untapped despite the global demand for these materials.
However, the strategist noted that the situation could change with the right legislative and economic approach. Moura said that with adequate policies, Brazil could increase its share of global rare earth production to nearly 10% [2].
This shift would move Brazil from a marginal player to a primary global supplier, a transition that would require significant investment in infrastructure and regulatory reform to overcome existing bottlenecks [1].
“"Brazil is a sleeping giant when it comes to rare earths."”
The gap between Brazil's massive reserves and its minimal production highlights a systemic failure to translate natural wealth into industrial power. If Brazil successfully implements the policies Moura suggests, it could reduce the global reliance on a few dominant suppliers of critical minerals, potentially altering the geopolitical landscape of the energy transition.
