According to a report by the Hong Kong English media The South China Morning Post on August 28, Faria, the coordinator of the prototype testing facility at Senai, a research institution under the Brazilian National Federation of Industries, stated that it will be difficult for Brazil to produce rare earth permanent magnets using domestic materials until 2032. The first batch of products from this facility is expected to be available by the end of 2028, but they will still rely on imported materials. If the entire chain of production, from mining and refining to magnet manufacturing, is considered, the timeline for independent production may be delayed until 2032 or 2035.
This pilot plant is located in Minas Gerais, with a designed capacity of about 100 tons per year. It is primarily aimed at process validation rather than large-scale commercial production. Faria revealed that the plant uses Asian technology, and its raw materials are processed ores from abroad. Although Brazil is one of the world’s largest exporters of iron ore, it does not produce high-purity electrolytic iron required for permanent magnets.
Brazil ranks second in the world in rare earth reserves, but its production accounts for only about 0.02% of the global total. Cesareo, CEO of the Brazilian Mining Institute, told The South China Morning Post that the timeline is still optimistic. It takes an average of 17.2 years for a country to go from proven reserves to first production, and "over these ten or fifteen years, other countries are also making progress."
Rare earth permanent magnets are key components in electric vehicles, wind power generation, industrial robots, and precision equipment. After China implemented export controls on certain heavy rare earths and permanent magnets in April 2025, other countries have accelerated their efforts to find alternative suppliers.
According to Reuters and the Brazilian newspaper 'Diário de São Paulo', American company USA Rare Earth announced that it will acquire the Sela Verde rare earth mine in the state of Goias, Brazil, for approximately $2.8 billion, along with long-term underwriting and financing arrangements. The mine is considered by the US side to be one of the few projects outside Asia capable of producing a full range of magnetic rare earth elements on a large scale. Brazilian antitrust authorities have completed the necessary reviews and filings, and a shareholders’ meeting is scheduled to take place in the near future.
The resource issue has become a topic in the presidential election in Brazil. former governor of Goias state and current presidential candidate, Carydado, signed a memorandum on critical minerals with the US in March this year. Current President Lula accused some opposition figures of 'preparing to sell Brazil'. Cesario said he asked Chinese officials about this issue, and the response was that China views Brazil as a partner rather than an opponent. Faria regards export controls as a strategy that Brazil must adopt.
At the policy level, the Brazilian House of Representatives has passed the 'National Critical and Strategic Minerals Policy' bill. This bill proposes to establish a financing guarantee fund and tax incentives for processing activities. The bill has been sent to the Senate and is listed as a priority agenda item. The leader of the Senate party responsible for this bill will be the rapporteur. There is still controversy in the mining industry regarding the powers of the council proposed in the bill.
Additionally, Trabbasso, the coordinator of the Brazilian "From Mine to Magnet" alliance, stated that the project aims to achieve a complete production cycle by around 2030, and is in contact with European parties.
Analysts point out that regardless of the path chosen for foreign cooperation, what needs to be shortened is the time gap between planning and implementation. Participants said that China established a dedicated management agency for rare earths as early as the mid-1970s, and it took several decades to develop a complete chain from mining, refining to downstream operations. Ferreira emphasized that Brazil is currently setting up its policy framework because it is aware of its own potential, but converting reserves into production still requires contracts, capital, technology, and time.
Reports indicate that Brazil is more likely to continue acting as a supplier of minerals in the short term, and will find it difficult to quickly become a substitute for the manufacturing of rare earth permanent magnets. China’s leading position in the entire rare earth industry chain will remain for a long time.
