Takeaways from the AP-Reporter Brasil story on the US and others turning to Brazil for rare earths

The world is increasingly turning to Brazil for rare earth minerals, crucial for technology and renewable energy. Brazil's reserves are second only to China's and have attracted foreign investors.

In the past three years, there has been a surge in rare earth exploration applications, with over 86% filed in the first half of 2026. This interest is raising environmental concerns, particularly in the Amazon and other areas. The US and other countries are seeking alternatives to China for these minerals.

China dominates global processing of rare earths, holding nearly half of the world's reserves. Brazil, on the other hand, has the second-largest reserves and is becoming a more attractive option for investors looking to diversify away from China.

Foreign investment, particularly from Australia and the US, is driving this interest in rare earth exploration in Brazil. A notable example is the acquisition of Serra Verde, Brazil's only commercial rare earth producer, by a US-backed company.

However, this new mining push could have significant impacts on local communities and ecosystems. Over a quarter of the exploration applications overlap with protected areas and Indigenous territories, including in the Amazon. Potential environmental damages include toxic chemical releases, radioactive waste, deforestation, and pollution of water sources.

Brazil is considering safeguards to address potential foreign influence in the sector. A pending law aims to establish a federal policy on critical minerals and rare earths, set investment priorities, and create a national council to monitor significant foreign influence. President Lula da Silva supports the proposed law, emphasizing the need to protect national interests and ensure processing and transformation of resources happen within Brazil.