EU Courts Brazil as Strategic Partner in Critical Minerals Race

• The European Union (EU) is turning to Brazil as a strategic partner in its push to diversify critical mineral supplies, with EU Commissioner Jozef Sikela saying the partnership would support both Europe’s supply needs and Brazil’s development goals.
• During a visit to Viridis Mining and Minerals' rare earth research and processing centre in Minas Gerais, Sikela highlighted the EU’s focus on sustainable business and local processing, aligning with Brazil’s objective of moving from exporting raw materials to higher-value processed minerals.
• According to the Commissioner, the partnership would allow the EU to secure supplies through purchase agreements while helping Brazil build refining capacity, access new technologies, and move up the supply chain into higher-margin production. He noted that Brazil holds the world’s second-largest critical mineral reserves and is currently the EU’s most strategic partner in Latin America.
• Viridis’ pilot project, inaugurated in May, can process 100 kilograms of ore per hour and produce up to 2.92 tonnes of mixed rare earth carbonate (MREC) annually. The company plans to invest US$360Mn in a commercial plant capable of producing 15,000 tonnes of MREC per year from 2028.
• The commissioner also pointed to a non-binding letter of intent signed this month between Viridis and Belgian chemicals company Solvay for the supply of MREC. Viridis’ CEO said discussions with the EU are at an advanced stage, with a potential Solvay agreement expected by the end of July.
• The developments come amid a global race for rare earths and critical minerals, as Europe and the United States seek to reduce dependence on China. Sikela indicated that the EU is also considering projects involving nickel and lithium in Brazil and plans to advance a memorandum of understanding with the Brazilian government.

(Source: Reuters)