The deputy Rodrigo Rollemberg presented a bill to create Terrabras (Terras Raras Brasileiras SA), a state-owned company dedicated to the extraction of rare earths and critical minerals.
The proposal seeks to replicate the Petrobras model, with minimal state participation to ensure control, but open to private companies, development banks, and sovereign funds.
Reserves and geopolitical potential
According to the United States Geological Survey (USGS), Brazil is the third country in the world with the largest reserves of rare earths, with 21 million metric tons, behind China (44 million) and Vietnam (22 million). This positions it above Russia, India, and the United States, consolidating its role as a strategic player in the global dispute for these minerals.
The objective of the Brazilian Government is to build an integrated supply chain that allows it to compete with China’s hegemony in the sector.
The initiative arises in a scenario of growing global interest. In 2023, the United States International Development Finance Corporation (USDFC) loaned 565 million dollars to Serra Verde, the only Brazilian company that extracts rare earths, securing participation in the firm. For Rollemberg, this fact reflects the “foreign interference” in the sector and reinforces the need for a state-owned company.
What are rare earths?
They are a group of 17 metallic chemical elements (15 lanthanides plus scandium and yttrium) essential for modern technology and the energy transition. Although not scarce, their extraction is complex and polluting.
Among their applications are:
- High-performance magnets for electric motors and wind turbines.
- Consumer electronics such as smartphones, screens, and cameras.
- Defense industry, in missile guidance systems and aircraft engines.
- Medicine, in magnetic resonance imaging equipment.
Strategic and economic importance
Brazil seeks to leverage its reserves to:
- Diversify the global supply chain, currently dominated by China.
- Attract investments and generate employment, with projects like those in Minaçu (Goiás).
- Boost the energy transition, by providing key materials for clean technologies.
Environmental challenges
Rare earth mining poses significant challenges: toxic processes, impact on local communities, and contamination risks. The national strategy must balance mineral sovereignty with environmental and social protection.
The creation of Terrabras represents a decisive step for Brazil to turn its geological potential into industrial and technological development. In a world where rare earths are considered the “gold of the 21st century,” the country seeks to position itself as a strategic alternative to Chinese dominance, although it will have to face the economic and environmental costs of this bet.
