For decades, the rare-earth supply chain has had one address: China. Now, Western companies and governments are writing very large checks to add a second one in Brazil.
The centerpiece move came in April 2026, when USA Rare Earth announced a $2.8 billion agreement to acquire the Serra Verde mine, Brazil’s only operating rare-earth facility. The deal, structured as $300 million in cash plus $126.9 million in shares, is expected to close in the third quarter of 2026. The goal isn’t just mining. It’s building what the company calls a “mine-to-magnet” supply chain entirely outside Asia.
Why Brazil, and why now
China controls roughly 90% of global rare-earth processing capacity. Brazil, meanwhile, sits on the world’s second-largest rare-earth reserves. Yet as of late 2025, the country produced less than 1% of global output. Only one mine was even operational.
Rare earths aren’t just for magnets in your earbuds. These 17 elements are essential for guided missiles, fighter jet engines, electric vehicle motors, wind turbines, and advanced semiconductors.
