Document from the Ministry of Mines and Energy proposes industrialization to insert the country into global energy transition chains
The MME (Ministry of Mines and Energy) presented this Friday (June 19, 2026) an unprecedented study to support the preparation of the National Rare Earths Strategy. The document focuses on the economic exploitation and neo-industrialization associated with these critical minerals. Here is the study (PDF – 10.5 MB).
The work was conducted by the ministry in partnership with the (Inter-American Development Bank) and prepared by the (Brazilian Center for International Relations). The report provides a diagnosis of the production chain and suggests guidelines for Brazil to stop acting just as a .
For the Minister of Mines and Energy, the current geopolitical scenario requires strategic vision and the ability to transform the availability of resources into development.
“Brazil meets all the conditions to occupy a leading position in the new global economy. We have natural resources, clean energy, solid institutions and the capacity for dialogue with different partners”he stated.
According to the minister, the commitment is to convert these advantages into innovation and jobs to preserve national sovereignty and support partners aligned with the country’s interests.
POTENTIAL AND BOTTLENECKS
Rare earths comprise a group of 17 chemical elements essential for digital technologies and the defense industry. The current economic focus falls on 4 of them: neodymium, praseodymium, dysprosium and terbium. They form the basis of high-performance permanent magnets, essential parts for electric vehicle engines and wind turbine generators.
The document indicates that Brazil has the 2nd largest reserves in the world, with 21 million tons. The country concentrates 23.1% of global resources and is second only to . Despite geological abundance, the national industry faces limitations in production capacity.
The sector’s production chain is divided into 3 stages: mining (upstream), separation and refining (midstream) and component manufacturing (downstream). Brazil is competitive in mining, driven by ionic clay deposits in states such as Goiás e Minas Gerais.
However, the country has almost zero capacity in the chemical processing phase, a technologically complex stage dominated by Chinese companies.
External dependence in the intermediate link is identified as the main national weakness. Cebri states that geological advantage alone does not guarantee strategic positioning in global supply chains.
AXES OF STRATEGY
To reverse this gap, the study proposes a selective and coordinated transition, divided into 3 phases.
No short termthe priority is to organize competitive mining, deepen geological knowledge and structure financial instruments to reduce risks for investors.
No medium termthe objective is to expand the national separation and refining capacity, with the creation of regional hubs integrated with consumer sectors, such as electric mobility and renewable energy.
No long termthe goal is to consolidate an integrated industry, capable of carrying out everything from mineral extraction to the manufacture of advanced components and magnets, in addition to the creation of recycling programs.
The report also warns of the need for greater regulatory predictability. The licensing of rare earth projects is often impacted by the presence of natural radioactivity (minerals classified by the acronym NORM).
The overlapping of competencies between environmental, mineral and nuclear bodies increases the cost of capital and delays investments. The harmonization of rules between the Union and the States is seen as a structural condition for the advancement of the production chain.
The adoption of tax incentives and the expansion of credit supply are also cited as necessary measures to make refineries viable. Currently, projects in the most advanced stage in Brazil total R$13.2 billion in announced investments.
If the country expands these initiatives, there is the potential to add 38,700 tons of rare earth oxides to the world market, a volume equivalent to 10% of global production estimated for 2025.
