US explores rare earth partnership with Brazil as Washington seeks to cut reliance on China

The US is in early talks with Brazil on a rare earth partnership, FT reports, as Washington seeks alternatives to China-dominated supply chains. Serra Verde’s $465m US-backed financing and EU competition add momentum.

The United States is weighing a rare earths partnership with Brazil, in early-stage talks that could become a new pillar of Washington’s strategy to diversify critical mineral supply chains away from China, the Financial Times reported. Meetings have already taken place involving government officials, industry stakeholders and financial institutions from both countries, according to people familiar with the discussions.

Why Brazil is on the radar

Brazil holds substantial rare earth potential—described by the FT as among the world’s largest deposit bases—at a time when China dominates global supply and processing of the 17-element group essential for technologies spanning EVs, wind power and defence systems. 
The FT noted that bureaucracy and investment hurdles have historically slowed Brazilian projects, and that only about 30% of Brazil’s territory has been thoroughly mapped for mineral potential—one reason officials and financiers see room for rapid upside if a coordinated framework emerges.

Talks follow earlier engagement—and rising global competition

The report comes after Reuters previously disclosed that Gabriel Escobar, the top US diplomat in Brazil at the time, held discussions with Brazil’s mining industry around rare earths and potential cooperation. 
At the same time, the US is not the only suitor. European Commission President Ursula von der Leyen has publicly referenced talks with Brazil on critical raw materials, underscoring a growing transatlantic competition to secure non-Chinese sources.

Serra Verde financing signals momentum

A key near-term anchor for any partnership is Serra Verde, Brazil’s only active rare earth producer. The project has secured about $465 million in US financing to expand output—an example of Washington putting capital behind supply diversification even before a broader government-to-government framework is finalized.

What comes next

According to the FT, the discussions remain preliminary, but diplomats and industry observers see a plausible path toward a deal, particularly as critical minerals become more central to industrial policy and national security agendas.