Entire supply chain in focus. As South Korea seeks new sources of critical minerals to support its high-tech industries, Brazil offers some of the world’s most promising rare earth reserves.
Brazil and South Korea have agreed to deepen their cooperation on critical minerals, including rare earth elements. The agreement was reached on Monday during a summit in Brasília between Brazilian President Luiz Inácio Lula da Silva and South Korean President Lee Jae Myung. According to the South Korean presidential office, the partnership will span the entire critical minerals supply chain—from resource development to downstream processing and manufacturing. The two countries also plan to encourage joint projects involving companies from both sides.
The new initiative builds on an existing framework for cooperation. In February, the two governments adopted a four-year cooperation plan that already included critical minerals. The latest agreement expands that commitment by explicitly covering the full value chain and establishing a regular dialogue between the relevant government authorities.
The partnership reflects the complementary strengths of both countries. Resource-poor South Korea is seeking to diversify its supply sources for its advanced manufacturing sector and reduce its dependence on China. Brazil, meanwhile, possesses substantial rare earth reserves, including deposits with relatively high concentrations of highly sought-after heavy rare earth elements such as dysprosium and terbium. The Pela Ema mine is already in operation, providing an important foundation for Brazil’s emerging rare earth industry. However, as in many countries outside China, the capacity to separate and process rare earths remains under development. Expanding these midstream capabilities is therefore considered one of the industry’s most significant bottlenecks.
Illustration: via Canva, montage rawmaterials.net
