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Brazil Has Rare Earth Reserves, But Remains Dependent on China for Neodymium Magnets, a Vital Input in the Global Green Economy
The debate around rare earths gained traction after the United States announced tariffs on imports from China. In Brazil, the movement is to attract foreign investments and exploit already known reserves.
Even so, the country continues to depend on imports of neodymium magnets and other strategic inputs.
Studies from the International Energy Agency (IEA) project that global demand for rare earths is expected to triple by 2040. The explanation lies in the energy transition and the electrification of mobility.
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Brazil stood still: while global GDP per capita soared 675% since 1980, the country grew only 428%, lost ground since 2015, and today could have 42% higher income, with an additional US$ 13.4 thousand per inhabitant.
Today, China dominates the sector, concentrating 60% of production and 85% of refining capacity. This puts countries like Brazil in a vulnerable position, as they depend on supply chains controlled by others.
“Brazil has significant reserves, but cannot transform this potential into effective production. We continue to import neodymium magnets from countries like China and Myanmar, facing tariffs, logistical risks, and currency volatility,” says Rodolfo Mídea, import expert and CEO of Fácil Negócio, one of the largest importers in the country.
Neodymium Magnets: Central Piece of the Green Economy
Neodymium is a mineral derived from rare earths used to produce high-power permanent magnets.
These magnets are found in hybrid and electric cars, wind turbines, medical devices, speakers, hard disks, and even military systems.
Although invisible to the consumer, they are considered the heart of the green and digital economy. “Each electric car can require up to 2 kg of neodymium magnets. A large wind turbine uses between 600 kg and 1 ton. This shows the opportunity Brazil is missing by not establishing a local rare earth supply chain,” explains Mídea.
Most importantly, these numbers demonstrate how demand will grow rapidly. Therefore, countries that dominate production will have a strategic advantage in the global market.
Importation Bottlenecks and Risks for the Industry
In recent years, international events have exposed the fragility of Brazilian dependence. The pandemic, environmental restrictions in China, and political instability in Myanmar have caused price surges and supply delays.
“During the pandemic, we saw the price of neodymium soar by more than 100%. Many national industries were on the verge of halting operations. The absence of domestic production makes Brazil a hostage to the external market,” adds Mídea.
Moreover, the lack of predictability affects national industry planning. Companies must deal with higher costs, stock difficulties, and uncertainty about delivery deadlines.
This reduces competitiveness in sectors that already face strong international competition.
Reserves in Brazil Still Underutilized
Brazil has significant reserves in states like Amazonas, Goiás, Bahia, Minas Gerais, Piauí, and Tocantins.
However, it does not dominate the refining stage, which is responsible for the greatest added value. Without technology to transform minerals into final products, the country loses competitiveness.
Experts assess that building a national supply chain could position Brazil as a strategic supplier in a sector valued at over US$ 13 billion annually.
The rapid growth of this market reinforces the strategic nature of developing proprietary technology.
“It’s not enough to extract; it is necessary to process and transform into high-value final products. Brazil is a reference in mining but is still crawling in rare earth refining. This limits our ability to compete and reduce dependence on imports,” analyzes Mídea.
Industrial Policy and Future of the Sector
In the expert’s view, the country needs a consistent industrial policy that encourages both exploration and processing.
“The technology, energy, and electric mobility industries need these inputs. If we had domestic production, we would reduce costs and risks, in addition to supplying other markets,” he concludes.
The most important thing is that the strategy could generate gains for the entire production chain. From mining to final products, integration would help reduce vulnerability and consolidate Brazil in a high-demand sector.
Reality Still Distant
As the debate advances in Brasília and at international forums, the reality is clear: Brazil imports practically all the volume of neodymium magnets and rare earths it consumes.
This ensures the functioning of the industry in the short term but leaves the country exposed in an increasingly strategic and competitive market.
Without changes, the risk is to remain a hostage to imports, bearing costs and uncertainties that limit the potential of the national industry.
With information from SEGS.com.
Brasília
Robert Yüksel Yıldırım, dono da Yıldırım Group, um conglomerado com presença em setores como mineração, logística, energia e transporte marítimo, não aceita a derrota que sofreu para os chineses em uma negociação brasileira de níquel.
O executivo turco classifica a operação como uma “virada mundial” no comércio deste mineral crítico usado pela indústria na transição energética. Yıldırım diz que uma de suas empresas, a Corex Holding, fundada na Holanda, fez uma oferta de US$ 900 milhões para comprar os negócios de níquel que a multinacional Anglo American detinha em Goiás, além de outros projetos novos no Pará e Mato Grosso.
A Anglo, porém, fechou negócio com a chinesa MMG (China Minmetals Group), por US$ 500 milhões. “Não sou contra a empresa chinesa, mas contra essa decisão. Nunca vi um vendedor recusar um preço maior. Eu ofereci US$ 900 milhões e não aceitaram o meu dinheiro”, diz ele
O que podemos fazer para mudar isso é gerar empregos para os jovens ? Deixar de ser país de montagem ?
É difícil. Como a China tem terras raras ela tem o trunfo. O Brasil poderia pedir em troca na negociação transferência de conhecimento para avançar na extração de terras raras. Creio que não vai conseguir este acordo da China. Ou procura desenvolver por conta para sua vitoria.