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Industrial Initiatives in Poços de Caldas Accelerate Billion-Dollar Investments and Technological Advancements, While Joint Ventures and Public Policies Position Brazil as a Global Leader in the Strategic Minerals Chain Until 2027.
Brazil has been advancing in its mission to take on a strategic role in the global critical minerals landscape with the progress of rare earth megaprojects in Poços de Caldas, in southern Minas Gerais.
On one hand, the Australian Meteoric Resources leads the Caldeira Project, focused on the initial extraction of rare minerals.
The Environmental Impact Study (EIA) was submitted in May of last year, and the expectation is to obtain a construction license by May 2026.
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The mining company was drilling hundreds of meters below the already mapped area in Pará when it discovered new copper and gold zones in Furnas, a project that could operate for 24 years alongside Vale.
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Rare earths, million-dollar compensation, and a farm in Goiás: understand the case in which a rural producer accuses Serra Verde of occupying his property while the legal dispute drags on for years
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China confirms the existence of a never-before-seen mineral, found in a deposit with a concentration 80 times above the global standard, which promises to reshape the battery industry and the global competition for strategic minerals.
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The northern region of Santa Catarina could become a new hub for strategic minerals after the Geological Survey of Brazil found high concentrations of rare earths in Joinville and Garuva, with a focus on neodymium, used in magnets that drive electric motors and turbines, although mining still depends on further studies.
Meanwhile, Viridis Mining and Ionic Rare Earths formed a joint venture recently for the installation of the first large-scale industrial refinery for advanced rare earth separation in Latin America.
The global investment in these enterprises exceeds R$ 1.18 billion, with official sources updating the value between R$ 1.1 billion and R$ 1.18 billion, according to data from 2025.
In the same region, a semi-industrial pilot plant of Aclara Resources has been operating since April 25, 2025, inaugurated in Aparecida de Goiânia, Goiás, with a capacity to process 250 tons of clays, produce concentrate with over 95% purity, and generate around 80 direct and indirect jobs.
Chinese Dominance and Innovation in Brazilian Refining
Today, China accounts for 85% to 90% of the world’s rare earth refining capacity, dominating the individual separation phase of these elements.
These elements are essential for supermagnets used in wind turbines, electric vehicles, smartphones, medical equipment, and defense systems.
Although countries like the United States, Australia, Canada, and Brazil itself have reserves, most of the production continues to be exported in the form of mineral concentrate, without added value.
The differential of the mining initiatives lies in the goal of verticalizing the production chain, combining extraction and refining technology at an industrial scale, which can reduce Chinese dependence.
Strategic Deposits and Environmental Sustainability in Poços de Caldas
Poços de Caldas hosts deposits of ionic clays, found in abundance, with confirmed presence of neodymium, prasiodimium, terbium, and dysprosium.
The extraction method is non-explosive and uses direct leaching, minimizing environmental impacts in compliance with international standards.
Rare Earth Refinery Timeline and Regulatory Challenges
The Viridis/Ionic joint venture plans to build the first industrial refinery in Latin America dedicated to the large-scale individual separation of rare earths.
Only China currently carries out this stage on a large scale.
The expectation is to begin operations in the second half of 2027, after the completion of licenses, offtake contracts, and financing.
Public Policies and Industrialization of the Critical Minerals Sector
In 2025, the federal government will launch new credit lines for critical minerals, with BNDES and Finep making around R$ 5 billion available in the sector.
In terms of reserves, Brazil ranks 2nd in the world, with around 21 million tons of rare earths.
The projects in Poços de Caldas are expected to generate about 700 direct jobs, in addition to thousands of indirect positions in services, transport, and energy.
Sustainability, Training, and Environmental Control
The chemical separation process involves toxic reagents, requiring strict protocols for neutralization and waste control.
The companies commit to closed-loop systems and methods for neutralizing waste, although there is still no complete external audit.
To meet technical demands, the training program “Fortalece Caldas” was launched in partnership with mining universities and federal research centers.
Growth of Global Demand and Strategic Impacts
According to the International Energy Agency, global consumption of rare earths is expected to grow by 50% to 60% by 2040.
Market studies project growth of 4 to 7 times in specific segments by 2040, particularly for magnet applications.
The installation of the refinery in Brazil could attract factories for electric motors, wind turbines, and high-tech equipment, positioning the country as a new strategic hub in critical minerals.
With complete infrastructure, advanced technology, and robust financial support, Brazil aims to overcome its history of raw material exports and achieve global prominence.
In light of this scenario, one question remains: Will Brazil be able to consolidate its position as a global reference in rare earths and advance in the technological chain, overcoming dependence on the Chinese market?
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