Rare earth elements are becoming critically important to governments all over the world. And now, Brazil is making moves to expand their positioning as a leader.
What’s happening:
- Brazil’s development bank BNDES is committing nearly $1B USD in new investment into startups and private companies advancing rare earth element deposits within the country
Why it matters:
- Brazil holds the second largest reserves of rare earth elements in the world after China, with approximately 23% of global reserves being located in Brazil
Going deeper:
- Brazil’s rare earth deposits are commonly found in ionic clays, which allows for cheaper extraction through simple leaching and avoids any sort of radioactive waste
- BNDES is also committing roughly $542M USD in new funding to companies building innovative technology for rare earth elements, including refining, recycling and permanent magnet production
The intrigue:
- Rare earth elements continue to come into major political focus in global politics, with Russia’s largest state owned oil company just recently buying a lining license for a rare earth deposit in Siberia and the United States of America launching an investigation into ways to limit the risks of relying on foreign countries for rare earth supply
