Brazil approves mineral policy to leverage massive rare earth reserves

Brazil holds the world’s second-largest reserves of rare earth elements, with approximately 21 million tons, trailing only China. Despite this vast resource, the country’s current production remains low; in 2025, Brazil produced roughly 2,000 tons compared to China’s 270,000 tons.

To address this gap, the Brazilian Senate has approved Bill 2,780/2024, establishing a National Policy for Critical and Strategic Minerals. The legislation aims to shift the economy from raw material exportation toward domestic processing and value addition. The policy includes up to R$ 7 billion in incentives, consisting of R$ 5 billion in tax credits for the mineral sector and up to R$ 2 billion for a federal guarantee fund.

Economic projections from Amcham Brasil suggest that increasing domestic mineral processing could significantly boost the economy. In a favorable scenario involving expanded investment and domestic industrial use, the cumulative impact on Brazil’s GDP could reach R$ 192.1 billion and create up to 750,000 jobs by 2050.