Highlights
- First large-scale rare earth producer outside Asia
- Produces four critical rare earth elements for electric vehicles and renewable energy
- Despite U.S. investor backing, current production remains contracted to Chinese processors until 2027
- Utilizes environmentally friendly ionic clay deposit mining
- Plans to double output by 2030
The Serra Verde mine (opens in a new tab) in Minaçu, Brazil, has commenced commercial production of mixed rare earth concentrate (MREC), marking a significant milestone as the only large-scale producer outside Asia of all four critical rare earth elements—neodymium (Nd), praseodymium (Pr), terbium (Tb), and dysprosium (Dy)—essential for manufacturing high-efficiency permanent magnets used in electric vehicles and wind turbines.
Recently reported by The New York Times (opens in a new tab), while the mine has backing from U.S. investors and support from the U.S.-led Minerals Security Partnership (MSP), nearly all of Serra Verde’s output is contracted to Chinese processors until at least 2027. This arrangement underscores China’s dominant position in rare earth refining, particularly for heavy rare earth elements, and highlights the West’s current lack of processing infrastructure.
Serra Verde’s production from ionic clay deposits offers a more environmentally friendly and cost-effective alternative to traditional hard rock mining. The company plans to double its output by 2030, aiming to become a key player in diversifying the global rare earth supply chain.
This situation highlights the urgent need for Western nations to invest in domestic rare earth processing capabilities, thereby reducing their reliance on China and securing critical materials for the energy transition.
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