EU Pursues Brazil as Key Ally in Critical Minerals Supply Race
The European Union is deepening ties with Brazil to secure critical mineral supplies, with Commissioner Jozef Sikela touring a Viridis Mining rare earth facility and signaling an upcoming deal to lower its reliance on China.
The European Union is actively pursuing Brazil as a strategic counterpart in its effort to broaden critical mineral supply chains, presenting a partnership framework that officials say will help Brazil's own development ambitions.
EU Commissioner for International Partnerships Jozef Sikela toured the rare earth research and processing hub of Australian miner Viridis Mining and Minerals in Poços de Caldas, Minas Gerais, on Saturday. The site is among four priority initiatives selected to fast-track EU-Brazil collaboration.
Sikela underscored that the European model prioritizes sustainable operations and domestic rare earth refining, which should help Brazil's objective of exporting better-quality processed materials rather than raw ore. Brazil holds the planet's second-largest reserves when it comes to critical minerals.
"What is extremely important is that also Brazil moves from the like a low-margin business so basically that the value is created here in the country," Sikela said in an interview, calling Brazil as the EU's most important partner in Latam region.
The arrangement would allow Europe to lock in supply through purchase contracts while assisting Brazil in expanding refining infrastructure, adopting new technology, and climbing into higher-margin segments of the value chain.
Viridis' pilot operation in Minas Gerais, launched in May, processes up to 100 kilograms of ore hourly, and yields up to 2.92 kg of mixed rare earth carbonate every year.
A non-binding letter of intent was signed this month between Viridis and Belgian chemical firm Solvay for its MREC supply, with CEO Rafael Moreno indicating that negotiations with the EU are at a somewhat final stage and a Solvay agreement could be finalized as well by late July.
Asked whether Europe arrived late to the expansion in Brazil, Sikela believed that the EU value proposition is better than what the others want from the country, pointing to jobs and sustainability as its biggest selling points.