China mines some 70% of the world’s rare earths, the 17 metallic elements primarily used in magnets needed for civilian and military technologies. But its 90% share of processing for rare earths mined around the world is what really concerns officials from other countries working to secure their supply.

“China is a formidable competitor,” said Ramón Barúa, chief executive of Canada’s Aclara Resources, which is opening a rare-earths mine in Brazil to supply a processing plant it plans to build in the U.S. Aclara said it plans by August to decide where in the U.S. to build its plant for separating rare-earths deposits into individual elements. Aclara signed an agreement in 2024 to supply rare earths to VAC, a German company that is building a factory in South Carolina with $94 million in Pentagon funding to make magnets for clients including General Motors…

Brazil has the world’s second-largest rare-earth reserves after China, some 21 million tons, according to the U.S. Geological Survey. That represents more than a fifth of known global reserves—and more than 10 times those in the U.S…Despite its huge reserves, Brazil has been a small player in rare earths because of its complex mining regulations and the difficulty of attracting financing from companies willing to confront entrenched Chinese competitors. Costs to mine and process Brazilian rare earths are estimated to be around three times China’s, meaning Western buyers would likely pay a substantial premium for Brazilian minerals. Only a few companies outside China have mastered rare-earth processing, and the learning curve is steep. 

Brazil’s first big rare-earths mine opened in 2024 by a US private equity company some 90 miles west of the town of Nova Roma…but the mine is contracted to ship most of its production to China !…Aclara plans to invest some $600 million to complete work on a larger plant next to the mine in Nova Roma to start full production in 2028.

Excerpt from Samantha Pearson, Rare-Earths Plants Are Popping Up Outside China, WSJ, May 18, 2025