Brazil is positioning itself as a serious contender to help the West break its dependence on Chinese rare earth supply chains, according to a new episode of the Energy Technology podcast that examines the country’s mineral ambitions and the obstacles standing in its way.
The country holds the world’s second largest rare earth resource base and is home to an expanding roster of advanced ionic clay projects, making it one of the most closely watched emerging players in the sector.
That interest has been sharpened by the recent G7 declaration on critical minerals, which underscored the importance of building mining, processing and recycling capacity among trusted allies.
In the episode, mining editor Alejandro Gonzalez sits down with Rafael Moreno, CEO of Viridis Mining and Minerals, the company developing the Colossus Rare Earth Project in Minas Gerais.
He is joined by Elizabeth Johnson, Managing Director of Brazil Research at TS Lombard, and GlobalData mining analyst Sai Dheeraj, for a wide-ranging conversation about whether Brazil can turn geological potential into a reliable, internationally competitive supply chain.
The panel agrees that Brazil’s moment has arrived largely because of external pressure.
Demand for rare earths has surged alongside the growth of electric vehicles, offshore wind power, advanced electronics and defence technology, and Western governments are actively searching for alternatives to Chinese supply.
Johnson frames this as a natural fit for a country with deep mining experience.
“Brazil already is a mining country,” she states, adding that “within this global push to de-risk supply from China, Brazil understands its potential to play an important role as an alternative supplier.”
Moreno sees the same shift playing out on the ground.
“There’s definitely been a national agenda around critical minerals,” he states.
He also notes that “Brazil is now seen as an important international partner.”
Much of the discussion centres on why Colossus, and projects like it, could prove commercially attractive.
Unlike conventional hard rock rare earth mines, Colossus is built on an ionic clay deposit, which allows rare earth elements to be extracted using relatively mild chemical processes instead of the energy-intensive crushing and flotation methods used elsewhere.
The project is targeting magnet rare earths, including neodymium, praseodymium, dysprosium and terbium, all of which are critical inputs for the permanent magnets used in electric vehicles, wind turbines and military hardware.
Moreno argues that these geological characteristics could give Brazil an edge on both cost and environmental performance compared with rival suppliers.
That edge, however, may not last indefinitely. Australia, Canada, the United States and a handful of African nations are all racing to develop their own rare earth projects with the same goal of reducing reliance on China.
Moreno warns that Brazil has only “a relatively short window” before these competing jurisdictions reach commercial production and capture market share.
Johnson largely agrees, stating that policymakers “understand the urgency” and pointing to increasing government support for strategic mining initiatives and faster investment timelines.
The panel is more divided on what is actually holding the industry back.
Moreno insists the real constraint is not downstream processing capacity but simply “bringing more mines into production,” arguing that supply growth has to start with extraction.
Johnson takes a different view, suggesting that long-term pricing signals and commercial certainty will ultimately be what drives serious investment decisions.
Dheeraj, meanwhile, stresses the importance of building out downstream processing infrastructure if Brazil hopes to capture more value from the minerals it extracts rather than exporting raw material alone.
The conversation closes by looking further down the road, asking whether Brazil can evolve beyond a raw materials exporter into a country with genuine separation, processing and recycling capabilities.
Whether the recent G7 commitments translate into tangible support for projects like Colossus remains an open question, but it is one that could shape not just Brazil’s mining sector, but the broader resilience of global rare earth supply chains for years to come.
