Brazil has entered the arena of global competition in the field of “rare minerals,” seeking to break the almost complete Chinese monopoly of this vital sector, which is the basis of the world’s advanced technological and defense industries.
The Brazilian government aspires to monetize its huge reserve of rare earth elements, which are among the largest untapped reserves in the world.
The new plan aims to attract billions of dollars in investments to develop mining and processing projects locally, instead of being limited to exporting raw materials, in order to ensure a leadership position in global supply chains.
China currently controls approximately 90% of the world’s rare earth processing and production, giving it significant geopolitical influence. The Brazilian moves are supported by an international desire, especially from the United States and European Union countries, to diversify sources of supply and reduce dependence on Beijing, especially in light of escalating trade tensions.
These metals are considered an essential element in the manufacture of:
- Engines for electric cars.
- Wind turbines to produce clean energy.
- Microelectronic devices and smartphones.
- Advanced defense systems and guided missiles.
Environmental and technical challenges
Despite promising prospects, Brazil faces significant challenges related to stringent environmental standards, as extraction processes for these minerals cause significant environmental impacts that require advanced processing technologies.
Brasilia is currently working to modernize mining laws and offer tax incentives to investors who commit to sustainable and environmentally friendly extraction techniques.
This Brazilian move represents a radical change in the global energy map, and may make Brasilia an indispensable player in the future of the green industrial revolution and advanced technology.
