Highlights

• Minas Gerais partners with Australian companies to enhance rare earth magnet production and research at the Senai unit in Lagoa Santa.
• The state acquires South America’s first rare earth magnet laboratory, positioning itself as a global reference in the new energy transition economy.
• This collaboration aims to create an innovative ecosystem, attract investments, and generate high-skilled job opportunities in the rare earth sector.

Minas Gerais (opens in a new tab), a Brazilian state that hosts significant iron ore (opens in a new tab) operations and also has a series of lithium (opens in a new tab) projects underway, is planning to boost activity in the rare earth (opens in a new tab) segment too, given the strategic focus on the topic.

Brazilian and Australian Link

The state secretariat for economic development, the state promotion and investment agency (Invest Minas), and the Minas Gerais state industrial federation (Fiemg (opens in a new tab)) signed a cooperation agreement with three Australian companies this week in Perth during a state government mission to Australia.

The companies Viridis Mining (opens in a new tab) and Minerals, Viridion Rare Earth Technologies, and Meteoric (opens in a new tab) Caldeira Mineração signed an MOU "to boost research, development, and innovation in the pilot production of rare earth magnets at the Senai unit for magnets and rare earths (CIT Senai ITR) in Lagoa Santa, in the metropolitan region of Belo Horizonte," the state government said in a release. 

State-backed Organization doing Deals

Fiemg acquired the former rare earth magnet production laboratory (LABFAB ITR) on December 21, 2023, from Companhia de Desenvolvimento de Minas Gerais (Codemge). It is the first rare earth magnet laboratory in South America, creating a supply chain that is almost unique in the world, outside of China.

“Minas Gerais is consolidating itself in this energy transition process. We have lithium, rare earths and other critical metals, making the state a global reference in this new economy," said Fernando Passalio, secretary of state for economic development.

A Mission—Minas Gerais ‘Strategic Hub’

“This partnership strengthens Minas Gerais as a strategic hub in the rare earth sector, creating an innovative and sustainable ecosystem capable of attracting new investments and generating high-skilled job opportunities in the state,” said Invest Minas director of investment attraction, Ronaldo Alexandre Barquette (opens in a new tab).

Can MinasGerais expand its mining footprint further into rare earth elements? Though relatively abundant, REEs are hard to mine, making their supply limited and concentrated in a few regions.