Brazil emerges as key destination in US-China rare earth minerals race

Brazil is becoming a primary recipient of massive investments as the United States and China compete for control over strategic rare earth minerals. These resources are essential for artificial intelligence, electrification, and various technologies defining the 21st century.

In Brazil, American investment is heavily concentrated in the rare earth sector. The US-backed company USA Rare Earth recently took control of Serra Verde, which is noted as a unique producer of four rare minerals outside of Asia. Supported by the US Department of Defense and the Development Finance Corporation (DFC), total US investment in this venture is expected to reach nearly US$ 5 billion.

Simultaneously, China has expanded its mineral sector presence in Brazil. Reports indicate that Chinese companies invested approximately US$ 6 billion in the country last year, marking the largest volume of investment by China into a single nation.