Brazil at Center of US-China Economic Rivalry Over Rare Earths

The United States has launched a new phase of its diplomacy focused on strategic minerals, convening representatives from 54 countries and the European Commission in Washington on February 4, 2026. Spearheaded by Secretary of State Marco Rubio and attended by Vice President J. D. Vance and other government officials, the "Critical Minerals Ministerial 2026" aims to secure and diversify global supply chains.

Brazil, with its vast reserves of rare earths, is a natural focal point for this initiative. Emanuel Pessoa, a specialist in the Brazilian mining industry, highlights that Brazil possesses the second-largest global reserves of rare earths, estimated at 21 million tons, accounting for 23% of the world's total. Despite this immense potential, its current production remains below 1% of its capacity, making it a prime target for nations seeking to reduce reliance on any single supplier.

These rare earth minerals are indispensable components in a wide array of modern technologies, including electric vehicles, semiconductors, and advanced military hardware. The significant gap between Brazil's reserves and its production capacity has understandably piqued the interest of major global powers, particularly the United States, which is actively seeking to establish more resilient supply chains.

The article suggests that Brazil finds itself at the center of an economic cold war between China and the United States, both vying for influence over the country's rich mineral resources. While the full article details are reserved for subscribers, the context points to a strategic competition for resources vital to future technological and defense industries.

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With 21 million tons, the South American giant is the second country, after China, that possesses the most important global reserves of rare earths. That is 23% of the planet's total. Yet its current production represents less than 1% of its potential.