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“Amid the global drive to secure critical minerals, the US is using many tools. They are very proactive and I believe they are going to be successful,” he said.
“OEMs [original equipment manufacturers] would like geopolitical solutions from their suppliers, and the participation of the [US] government is amazing. This will accelerate the construction of alternative supply chains outside of China, to eliminate the vulnerability [created by dependence on China],” Barúa said.
He added that US President Donald Trump was coordinating an effort full of ideas and innovations on how to accelerate the supply chain to overcome this vulnerability.
Barúa noted that the US was discussing a minimum price for US critical minerals projects, a $12 billion critical minerals stockpile, and funding for some companies.
Aclara received $5 million from the US government via the US International Development Finance Corporation (DFC) that will be used in a feasibility study on the Carina project in Brazil, which was expected to be completed by March. The contract would allow DFC priority to invest in the project, but specific terms such as debt, equity and offtake agreements have still to be negotiated.
Brazilian rare earths miner Serra Verde has also received a $565 million financing package from the DFC.
According to Barúa, so far, Aclara built a good relationship with the DFC but currently has no obligation to allocate production to the US. But the contract restricted exports to certain countries, primarily adversaries of the US. “The only thing that the contract says is that we must sell to allies of the US government,” he said.
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In the past few months, the media has been constantly reporting on interest in the rare earths reserves in Brazil, mainly from the US.
Brazil has the second-largest reserves of rare earths in the world, at 21 million tonnes, according to the US Geological Survey (USGS). China has the largest reserve of rare earths, at 44 million tonnes.
So far, there is no formal deal between the US and Brazil regarding rare earths.
In October 2025, Brazilian mining association IBRAM and the Chargé d’Affaires of the US Embassy in Brazil, Gabriel Escobar, had a meeting to discuss a collaboration involving the US government, the Brazilian mining industry and the Brazilian government, to channel US investments into critical and strategic mineral production projects in Brazil.
“A deal involves a lot of political angles. It will make a lot of sense for both countries to sign an agreement,” Barúa said.
“Brazil intends to increase its participation in these supply chains, while the US needs these materials for its industry. But it needs to be approached in stages,” he added. “The initial step would involve building a supply chain combining assets in Brazil and the US, with Brazil providing processed materials. A lot is said about adding value in Brazil and advancing in the supply chain, but first we need to develop technology. Much of the work for a technology [for separation of rare earths] is being developed in the US. Currently, only China has the technology. To replicate this in Brazil will take much longer.”
Aclara Resources announced plans to build a heavy rare earth element (HREE) separation plant in the US state of Louisiana, targeting production of dysprosium and terbium, as well as other HREEs and light rare earth elements (LREEs), using material from its ionic clay deposits in Brazil and Chile as feedstock.
Aclara intended to start production at the facility in mid-2028, subject to the completion of funding and offtake agreements.
In a report, Ewa Manthey, commodities strategist at ING, noted that the US was still heavily dependent on China for rare earths, which are essential in defense, clean energy and high-tech manufacturing.
“The rare earth supply chain is highly concentrated,” Manthey said. “Deposits exist outside of China, notably in Brazil, the US and Australia, but many rely on Chinese refiners. It is refining capacity, rather than mineral wealth, that is the source of vulnerability.
“Scaling-up remains slow due to high costs, technical complexity and long permitting deadlines. Building a new mine can take eight to ten years, while building a new refinery takes about five. Building mines, refineries and processing plants in places such as Australia, the US and Europe also costs more because of higher capital needs, stricter environmental rules and pricier labor and energy than in China,” she added.
For Barúa, Brazil is doing very well regarding rare earths, with Aclara strongly confident in Brazil’s institutional framework.
“We have a long-term commitment to the country [and] have been positively impressed by Brazil. But we would like to see in Brazil a faster execution in permitting processes,” he said.
“Brazil’s government has belatedly made rare earths a strategic priority,” William Jackson, chief emerging markets economist at Capital Economics, said in a report, “and is seeking to provide financial support, leveraging its deposits to develop higher-value added downstream industries. But the government is fiscally strained and bureaucratic hurdles remain a major concern.”
Barúa believed that the US was moving faster than the EU to develop its supply chain. “The US offers faster mechanisms for development than the EU or countries such as Japan and South Korea,” he said.
Recently, the European Court of Auditors (ECA) published a report saying that the EU was having difficulties securing the supply of the raw materials it needs to meet its energy and climate goals.
“EU action on import diversification is not producing tangible results, bottlenecks hinder domestic production, and recycling is still in its infancy,” the report said. “Against this backdrop, many EU-supported projects are unlikely to succeed in time, the auditors say.”
But in a statement in Rio de Janeiro on January 15, European Commission President Ursula von der Leyen, in company with Brazilian President Lula da Silva, highlighted that Europe and Brazil were moving toward a very important political agreement on critical raw materials, mentioning rare earths, lithium and nickel.
“In the near term, China will likely maintain its edge, thanks to technical expertise, low costs and an extensive supply network,” Manthey said. “But rare earth supply chains must diversify.
“International cooperation and investment are essential first steps. Breaking Beijing’s grip on rare earths will be slow and expensive, but the payoff is strategic independence. Export controls that give China leverage today will ultimately spur global efforts to develop non-Chinese supply chains. The more the world invests in onshoring and alternative suppliers, the less control China will wield in the long run,” she added.
Two rare earths experts outlined three methods for strengthening Western rare earth supply chains during the MMTA/Fastmarkets Critical Minerals Roundtable in New York City on January 29, urging Western nations to sustain and expand policy intervention, support separation of the full suite of lanthanides, and encourage long-term commitments to producers to help secure supply.
Fastmarkets assessed the price for neodymium-praseodymium oxide 99% ratio (75:25), fob China, at $107-109 per kg on February 5. This was up from $105-107 per kg on January 29.
And Fastmarkets assessed the price for neodymium-praseodymium metal (Nd 75% Pr 25%), fob China, at $130-132 per kg on the same day. This was up from $129-131 per kg in the same comparison.
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