US Turns to Brazil to Break China’s Rare Earth Grip, but Supply Chain Hurdles Remain

The United States is intensifying efforts to reduce its dependence on China for rare earth minerals by turning to Brazil as a strategic partner, even as structural challenges in the global supply chain threaten to slow progress.

Rare earth elements, vital for electric vehicles, advanced electronics and military systems, have become a focal point in the growing economic rivalry between Washington and Beijing. While the U.S. and its allies have sought alternative sources, China continues to dominate not just mining but, crucially, the processing and refining stages that convert raw materials into usable components.

Officials and industry executives told The New York Times that Brazil, home to some of the world’s largest untapped reserves, is emerging as a key part of Washington’s diversification strategy. The country’s mineral wealth, combined with a relatively transparent regulatory framework, makes it an attractive counterweight in a supply chain long centered on China.

However, analysts caution that extracting minerals is only one part of the equation. Much of the rare earth material mined globally is still sent to China for processing, underscoring Beijing’s entrenched advantage in refining capacity and downstream manufacturing.

“The choke point is not in the ground, it’s in the processing,” experts noted, highlighting the need for the U.S. and its partners to invest in refining infrastructure if they are to meaningfully reduce reliance on China.

Efforts to build such capacity in Brazil and elsewhere face hurdles. Mining projects require significant capital and long development timelines, while stricter environmental regulations can raise costs compared to operations in China. At the same time, political and trade frictions risk complicating cooperation between Washington and Brasília.

Despite these challenges, the push reflects a broader strategic shift as countries seek to secure supply chains for critical minerals essential to the clean energy transition and national security.

For now, industry observers say, China’s dominance remains firmly intact. Without coordinated investment across mining, processing and manufacturing, attempts to diversify supply may fall short of reshaping the global rare earth landscape.