To counter China, the US and EU are rushing to buy Brazilian rare earths, and this competition was already decided from the start!
Rare earths, as core strategic materials, Brazil, which ranks second in global reserves, has become a key battleground for the US, EU, and China. The US has invested $500 million to develop Brazil's only rare earth mine, pushing for onshoring; the EU, lacking the funding and decision-making power of the US, can only turn to domestic industry cooperation, but faces obstacles due to stalled free trade agreements. In 2024, China invested $556 million in Brazil's mining sector, steadily building its global supply chain. Currently, China processes 92% of the world's rare earths, and even if Brazil's rare earths are fought over, they will ultimately need to be refined in China. The essence of the three-way competition is a deep struggle of technology, capital, and the entire industrial chain.
[Smart] This battle over Brazilian rare earths is not simply about resource grabbing, but a final showdown for industrial chain influence. Looking back, it took China decades to build a complete rare earth chain, securing 92% of the global processing share and core heavy rare earth technologies. This is hard power accumulated through long-term planning. The US and EU are busy throwing money to secure mines and form small circles, but they still cannot overcome their processing shortcomings, exposing the illusion of decoupling. Brazil, leveraging its trade independence, balances all sides flexibly. However, the key mineral sector is not a zero-sum game; closing off and excluding others will only disrupt the global division of labor. Only open collaboration can truly stabilize the global supply chain!
Original: toutiao.com/article/1856484125308940/
Statement: This article represents the views of the author.