Highlights

• Brazilian Rare Earths signs landmark 10-year supply deal with French processor Carester
• Positions Brazil as a potential Western Hemisphere rare earth separator
• Partnership aims to reduce dependency on China's rare earth market
• Bilateral industrial alliance between France, Japan, and Brazil
• Potential development of Latin America's first industrial-scale heavy rare earth separation plant
• Could significantly impact global critical minerals landscape

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Brazilian Rare Earths Ltd (opens in a new tab) (ASX: BRE) has signed a landmark 10-year supply and technology partnership with Carester (opens in a new tab), the French government–backed rare earth processor constructing what will be Europe’s largest heavy rare earth (HREE) separation and recycling complex in Lacq, France. The agreement—covering up to 150,000 tonnes annually of dysprosium and terbium feedstock—sent BRE shares up 7.5% to a record high, tripling the company’s valuation over the past year.

Rare Earth Exchanges (REEx) has reported that BRE is ranked 8th in its Heavy Rare Earth Element Project/Deposit Rankings, while Carester is ranked high in the REEx processor category. Consisting of ex-Solvay professionals, the REEx network of experts considers Carester to be one of the most formidable separation and refining expert groups in Europe.

What Rings True

Public filings and investor disclosures confirm the essentials: Carester’s Lacq project is on track for completion in late 2026, financed by both French and Japanese partners. The deal extends well beyond supply—Carester will also provide engineering and commissioning expertise for BRE’s proposed separation plant at theCamaçari Petrochemical Complex in Bahia, Brazil. If completed, it would represent Latin America’s first industrial-scale HREE separation plant—a notable pivot for a country long associated with iron ore, not rare earths.

A Grain of Salt

While The Motley Fool Australia largely reports the facts, its tone skews optimistic—typical of retail-facing market coverage. One red flag: BRE’s claim that Carester’s plant will produce 600,000 tonnes of HREE oxides annually. That number defies industry reality—the entire global HREE output is measured in hundreds, not hundreds of thousands, of tonnes. The likely explanation is a typo or unit mix-up (perhaps kilograms or total processed material). Investors should await clarification from both companies before treating the figure as credible.

The Bigger Picture

This deal carries geopolitical weight. France and Japan are clearly positioning themselves to reduce dependency on China’s near-total control of heavy rare earth separation, while Brazil aims to anchor a new South Atlantic supply hub. The partnership highlights how Western diversification is advancing outside Washington’s direct orbit—through bilateral industrial alliances rather than policy declarations. Should BRE’s Bahia plant reach production, Brazil could become the first Western Hemisphere producer of separated dysprosium and terbium—essential ingredients in high-temperature permanent magnets for EVs, wind turbines, and defense systems.

Final Take

This is more than a mining headline—it’s a strategic alignment. A functioning French–Brazilian corridor could reshape trade routes and give the West its most tangible chance yet to chip away at China’s dominance in heavy magnet materials. But for now, it’s still a blueprint. As ever in rare earths, execution—not ambition—will separate winners from dreamers.

Citation: Cameron England, Motley Fool Australia, “Rare earths sales deal sends shares in All Ords miner to record high (opens in a new tab),” October 9, 2025.

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