Brazil has the second-largest rare earth reserves in the world, but it still cannot challenge China's dominant position.

Brazil possesses the world's second-largest rare earth reserves, but due to the lack of high-value-added industrial chains, it is difficult for Brazil to challenge China's dominant position in the short term. China's true core advantage lies in its control over the entire industrial chain—from mining and separation to metal alloy production, magnet manufacturing, and recycling—forming a systemic barrier.

China (approximately 51.8%) and Brazil (approximately 24.7%) together account for about three-quarters of the world's known reserves (around 44 million and 21 million tons respectively). However, China produces nearly 70% of the world’s rare earths, while Brazil’s output has consistently remained below 1%. This stark disparity makes Brazil currently more like a "slumbering giant."

China holds about 90% of the global rare earth separation and refining capacity, enjoying a crushing cost advantage (Brazil’s estimated mining and processing costs are roughly three times those of China), and has built a deep “moat” through over 26,000 related patents.

Policy and geopolitical dynamics: The Brazilian government is leveraging opportunities created by export controls to push for local development requirements. Yet Brazil’s technology in magnet manufacturing and other key areas remains underdeveloped, and official exploration license approvals are severely lagging (over 3,500 applications pending).

In summary, Brazil boasts impressive resource potential, but China’s advantages are rooted in decades of accumulated large-scale industrial systems and technological ecosystems. Even with financial and technological support from the U.S. and Europe, bridging the gap built on technology, cost, and patent barriers will not be achieved overnight.

Nevertheless, Brazil’s rare earth mineral reserves firmly establish its status as a major player in rare earth resources—though it remains, at present, more of a "slumbering giant."

Original source: toutiao.com/article/1867126238959632/

Disclaimer: The views expressed in this article are solely those of the author.