A global race for Brazil's vast rare earth deposits is intensifying, with the United States, China, and the European Union competing for access to these crucial minerals.
A global competition for Brazil's extensive rare earth deposits is heating up, primarily involving the United States, China, and the European Union. These minerals are vital for a range of 21st-century technologies. Brazil possesses the second-largest reserves of these metals in the world, drawing interest from Washington and Brussels as they seek to decrease their reliance on China, the dominant producer controlling much of the supply.
In recent developments, European Commission President Ursula von der Leyen announced last month in Rio de Janeiro that the EU is negotiating an agreement with Brazil to foster joint investments in critical raw materials. This partnership aims to secure access to essential minerals and reduce dependency on China's dominance in the market, underlining the strategic importance of these resources for both the EU and the US in technological advancements.
Moreover, Brazil's export promotion agency is set to host an event next month, inviting EU-connected investors to announce financial support for five mining projects within the country. These projects will target not just rare earth elements but also nickel, lithium, and manganese, indicating a broader strategy to solidify Brazil's role as a key player in the global supply chain of these critical materials. The EU's pursuit of these agreements places it in direct competition with the US, highlighting the geopolitical implications surrounding the control and access to rare earth elements in the region.
