US in rare earth talks with Brazil: FT

The U.S. is exploring the possibility of forming a rare earths partnership with Brazil — estimated to hold the second-most in the world — as Washington steps up efforts to reduce its dependence on China, the Financial Times reported over the weekend.

Officials from both countries have held preliminary meetings that include government representatives, industry stakeholders and financial institutions, the FT reported, citing officials involved.

Some diplomats and lobbyists see a potential deal following a tentative rapprochement between U.S. President Donald Trump and his Brazilian counterpart Luiz Inácio Lula da Silva. Brazil launched the National Mining Policy Council in November to revive the industry and overcome bureaucratic and investment hurdles that have held back projects. The government has only mapped about 30% of the country for mineralogy, the FT said.   

Brazil’s only active rare earth producer, Serra Verde, has already secured U.S. financing of about $465 million to expand its production. A proposed project by Canada’s Aclara Resources (TSX: ARA) is also in early stages, with production targeted for later this decade.

Earlier talks

Reuters reported last October that America’s top diplomat in Brazil, Gabriel Escobar, held discussions about rare earths with Brazil’s mining industry association, Ibram.

Europe is also seeking stronger mineral ties. Last week, European Commission President Ursula von der Leyen confirmed discussions with Brasília about potential partnerships on critical raw materials, including investments in rare earths. 

Beijing leaned into its rare earths dominance when it restricted exports last April as a direct response to U.S. trade policies. Those curbs have been eased, but the U.S. has ramped up attempts to secure deals with other countries, such as Australia and the Democratic Republic of the Congo, while hungering for direct control in Greenland. 

The 17 metallic elements classed as rare earths are used in key technologies from electric vehicles to defence systems.