Brazil is drawing a wave of foreign interest in rare-earth exploration as governments and manufacturers seek supply outside China. The country holds an estimated 21 million metric tonnes of reserves, second globally to China’s roughly 44 million.
Of 2,727 rare-earth exploration applications recorded through June, 42% came from subsidiaries of foreign mining companies or businesses with foreign ownership. More than 86% of all applications were filed during the past three years, including 268 in the first half of 2026.
Australian-backed companies lead with 695 applications, followed by US-backed groups with 347. Eleven of the 20 companies with the largest portfolios have foreign investment, showing that exploration rights are becoming part of a wider supply-chain competition.
Most applications will not become mines: industry estimates suggest only a small fraction of prospects survive drilling, technical studies, financing and licensing. Moving from exploration to commercial production can take five to 10 years.
Environmental exposure is substantial. At least one quarter of applications overlap or lie within 10 kilometres of 283 protected areas and Indigenous territories, where potential effects include deforestation, contaminated water, air and noise pollution, toxic chemicals and radioactive waste.
US support has moved beyond early exploration. Brazil’s only operating rare-earth producer, Serra Verde, received a $565 million financing package from the US International Development Finance Corporation and was acquired by USA Rare Earth for about $2.8 billion in a deal completed in June.
Chinese groups had filed no rare-earth applications by June, but their interest is visible through partnerships and acquisitions. State-owned China Nonferrous Metal Mining Group bought tin producer Mineração Taboca, while Shenghe Resources signed a memorandum with Brazilian partners to pursue opportunities.
Brazilian policymakers are considering safeguards that would favour domestic processing, technology transfer and oversight of significant foreign influence. Faster approvals may attract capital, but local consultation and environmental controls will determine whether mineral development supports national value creation without shifting disproportionate costs to nearby communities.
