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How Brazil Can Chip Away at China’s Rare Earths Dominance

Mariana Durao
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⚡ Quantum Brief
China retaliated against 2025 US tariffs by restricting rare earth exports, crippling Western factories and exposing critical supply chain vulnerabilities in high-tech and defense sectors. A temporary trade truce eased China’s export controls, but companies remain urgent about securing alternative rare earth sources to avoid future disruptions and geopolitical leverage. Governments now classify rare earth supply diversification as a national security priority, accelerating policies to reduce dependence on China’s near-monopoly (80%+ global production). Brazil emerges as a viable challenger with untapped rare earth reserves, offering Western markets a strategic alternative to China’s dominance in magnets, batteries, and quantum tech components. The shift reflects a broader decoupling trend, where economic resilience and tech sovereignty increasingly drive rare earth investment and mining expansion outside China.
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000When China leveraged its dominance in rare earths to retaliate against US tariffs last year, the disruption to factory operations in America and Europe underscored the vulnerability of Western companies’ supply chains.While the trade truce agreed between the two countries included an easing of China’s export controls on rare earths, firms are still looking for alternative sources, and governments are treating diversification of supply as a matter of national and economic security.

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