Key facts
- Australia is seeking to become a responsible supplier of rare earths, offering an alternative to China's market dominance.
- Brazil is emerging as a key player in rare earth reserves and exploration, attracting substantial foreign investment, particularly from the U.S. and Australia.
- A significant portion of rare earth exploration applications in Brazil are from foreign-owned companies, with mining potentially impacting the Amazon rainforest.
- Indigenous communities in Brazil are raising concerns about the environmental risks associated with increased rare earth mining.
- Demand for rare earths is expected to at least triple by 2040 due to their essential role in green technologies and electronics.
As Australia seeks to establish itself as a responsible alternative supplier of rare earths, the question of who will bear the environmental costs associated with minimizing the industry's significant impact remains unresolved. Simultaneously, Brazil is emerging as a crucial player in the global race for these critical minerals, attracting substantial foreign investment, particularly from the United States and Australia. This surge in exploration, with over 86% of applications filed in the last three years, is driven by the need for supply chain diversification away from China's dominance. However, this expansion, which includes areas near the Amazon rainforest, raises serious environmental concerns, particularly for Indigenous communities who are beginning to voice their alarms. The U.S. government has also shown interest, with a stake in a firm that acquired Brazil's sole commercial rare earth producer. The demand for rare earths is projected to increase significantly by 2040, underscoring the urgency of addressing both supply security and environmental sustainability in their extraction and processing.