Brazil's Graphite and Rare‑Earth Mining Highlights Export Gaps, Water Conflicts

Brazil holds about 25% of the world’s graphite reserves – roughly 74 million tonnes – second only to China, yet the country extracts only the concentrate and ships it abroad for refinement. A notable example is Appian Capital Brazil’s R$ 700 million investment in a mine in Minas Gerais, which sends the concentrate to a processing plant in the United States. The United States imports all of its natural graphite, a market dominated by China, which supplies about 80% of mining and over 90% of refining.

Brazil also has the world’s second‑largest deposits of rare‑earth elements. The first commercial rare‑earth mine in the country, operated by Serra Verde Pesquisa e Mineração Ltd. in Minaçu, Goiás, produces neodymium, praseodymium, terbium and dysprosium. Within two years of operation, the project has sparked territorial disputes and water‑resource conflicts with local communities and traditional land‑holders, highlighting the environmental costs of expanding critical‑mineral extraction. Out of more than 2,700 active mining permits nationwide, only seven have been granted extraction licences, all in the Goiás mine, underscoring the strategic yet contentious role Brazil is playing in the global race for critical minerals.