The operator of the Pela Ema mine expects sufficient heavy rare-earth separation capacity outside China to become available within the next few years.
Brazil is considered one of the most promising candidates to reduce China’s market dominance in rare earths. The South American country not only holds the world’s second-largest known reserves but also has ion-adsorption clay deposits rich in highly sought-after heavy rare earths such as dysprosium and terbium. Until now, such clays have been mined commercially only in China and neighboring Myanmar, while processing is carried out exclusively in China. Western capacity—such as in the United States, Canada, and Europe—is still being developed.
Brazilian producer Serra Verde now intends to actively support this shift. The company has shortened existing off-take agreements with Chinese firms, which are set to conclude by the end of 2026, CEO Thras Moraitis told Reuters. Originally, long-term contracts were necessary because there were no alternative processing options. In a few years, however, suitable separation facilities are expected to be available in Western countries, Moraitis said.
Serra Verde began production at its Pela Ema mine in the central Brazilian state of Goiás in early 2024. The site is expected to produce at least 5,000 tonnes of mixed rare-earth oxides per year, with a significant capacity increase considered feasible. According to the company, extraction is more environmentally friendly than in China, as no harmful chemicals are used to leach the clays.
State-backed minimum prices will be essential for building a competitive rare-earth industry outside China, Moraitis added. The United States has already employed such a mechanism as part of a deal with its largest rare-earth producer, MP Materials, sending a strong signal to the industry. According to media reports, the European Union and the G7 countries may follow suit.
Photo: via Canva, montage rawmaterials.net