Brazil is set to cut in on China's rare earths dominance

There is a new rush for resources taking shape in Brazil . But this time, it is not about gold, coffee or rubber. Instead, the focus is on the gold of the artificial intelligence and renewable energy era: rare earths .

"The next big, rare earth projects in the world will be in Brazil," the geologist Andrew Tunks, CEO of the Australian mining company Meteoric Resources, told DW. "I don't know how long it will take," Tunks said, "but I think in time [Brazil] will compete with China."

Meteoric is investing heavily in rare earth mining in Brazil. Its so-called Caldeira project, located in the state of Minas Gerais, is believed to be the world's largest ionic clay deposit.

Ionic clay deposits are among the most important sources of "medium" and "heavy" rare earths, such as dysprosium and terbium, which are essential for the high-performance magnets used in wind turbines and electric vehicles .

According to the International Energy Agency (IEA), "demand for magnet rare earth elements (neodymium, praseodymium, dysprosium and terbium) has doubled since 2015 and is set to expand further by a third by 2030 under today's policy settings, thanks to growing electrification and the rapid deployment of new energy technologies such as EVs and wind turbines."

The IEA says growing demand for automation, robotics and digital technologies will further boost the need for rare earths, which are essential for electric vehicles, AI data centers and advanced robotics.

Brazil holds the world's second-largest rare earth reserves after China, with estimated deposits of around 21 million tons. China remains far ahead, topping the global ranking with 44 million tons.

Rising global demand for rare earths has triggered an explosion in mining applications at Brazil's National Mining Agency (ANM). There are currently 2,758 projects under consideration.