The West is facing a rare earth shortage, with the US government eyeing a Brazilian mine as its only viable alternative to China. The Serra Verde mine, backed by American investors and opened last year, has the potential to supply critical rare earth metals to the US market.
China controls most rare earths and has been withholding strategic metals amid an intensifying trade war with the US. In response, the US government has quietly disclosed its plan to finance the Brazil mine’s expansion. However, there is a catch: the mine is already contracted to sell its output to China.
The West is struggling to keep up with demand for rare earths, essential for building electric vehicles, wind turbines, and guided missiles. China dominates the mining and processing of rare earths, leaving the US and other Western nations largely reliant on Chinese supplies.
Brazil has emerged as a potential game-changer in the global supply chain, thanks to its rich deposits of heavy rare earths. The country’s Serra Verde mine is producing significant quantities of these critical minerals, with plans to expand production to meet growing demand.
Despite China’s grip on the market, other countries are working to establish their own capacity for processing and separating rare earths. However, it will likely take years to build new facilities, leaving Brazil as the US’s only viable alternative in the short term.
As tensions between the US and China escalate, governments and industry leaders are becoming increasingly urgent about finding alternatives to Chinese rare earth supplies. With Serra Verde poised to supply a significant portion of the global market, its success could be crucial in breaking China’s stranglehold on this critical mineral.
Source: https://www.nytimes.com/2025/04/16/world/americas/brazil-mine-rare-earths-china.html