Brazil sees surge in mining mergers as US and Europe seek critical minerals

Global demand for critical minerals used in clean‑energy technologies is driving a wave of mining mergers and acquisitions, with the United States and European investors seeking to cut reliance on China. Brazil, rich in rare‑earth deposits, has become a focal point: transactions in the Brazilian mining sector rose 56% in the first half of 2025.

In April, U.S. firm USA Rare Earth purchased Brazil’s Serra Verde for US$2.8 billion, securing a mine and processing plant in Goiás that can produce neodymium, praseodymium, dysprosium and terbium. Earlier in the year, Anglo‑Australian miner Rio Tinto acquired Arcadium Lithium for US$6.7 billion and entered talks with Swiss‑based Glencore on a merger that could create a company worth about US$260 billion, although talks cooled in February. The Brazilian Aluminium Company (CBA) also sold a 68.59% stake to a joint venture of China’s Chalco and Rio Tinto for R$4.689 billion.

Industry observers note that while capital is plentiful, challenges remain: limited processing capacity outside China, high refinery costs, price volatility, and tightening environmental and social licensing requirements.