Brazil Gains Ground in Strategic Minerals

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Written by Renzo Castillo for IIR News Intelligence (Sugar Land, Texas)

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Summary

Global demand for critical minerals continues to grow, and many countries are looking to diversify their supply chains.

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Brazil Growing Into Critical Minerals Powerhouse

Brazil is becoming one of the main markets for mining investment in South America. Its geological diversity and long history in the mining industry provide favorable conditions for new projects, especially those related to strategic minerals.

According to Industrial Info Resources data, South America currently has a mining investment pipeline of approximately US$301 billion, covering 2,174 capital projects. The Global Market Intelligence (GMI) Metals & Minerals Project Database offers a list of detailed project reports.

Brazil ranks third in total investment, with US$54.8 billion, behind Chile and Argentina. However, Brazil leads the region in the number of projects, with 761 identified projects.

This difference shows an important characteristic of the Brazilian mining market. While Chile and Argentina focus much of their investment on large copper and lithium projects, Brazil has a more diversified portfolio. This includes iron ore, nickel, niobium, rare earth elements, and other minerals.

One of the main highlights is the level of investment in the miscellaneous metal ore mining category, which includes rare earth projects. According to Industrial Info, Brazil accounts for approximately US$4.7 billion of the US$6.3 billion identified in this category across South America. This represents nearly 75% of the regional total.

Brazil's strong position is also related to its geological potential. According to the U.S. Geological Survey (USGS), Brazil has estimated rare earth reserves of 21 million metric tons, the second largest in the world. China ranks first, with approximately 44 million metric tons.

Looking to 2027, Industrial Info has identified 187 mining projects in Brazil scheduled to start that year. These projects represent an estimated investment of US$18.9 billion, or 34% of the country's total mining investment pipeline. Iron ore remains the leading sector, with US$8.7 billion in investment across 44 projects.

Investment in strategic minerals also represents an important share of the market. Projects in the miscellaneous metal ore mining category, which includes rare earth elements, account for approximately US$2.1 billion. Meanwhile, projects related to ferroalloy minerals, including nickel, manganese, and niobium, represent US$1.4 billion. Together, these two categories account for around US$3.5 billion in projects scheduled to start in 2027.

Despite these opportunities, project development will depend on several factors, including access to financing, environmental permits, infrastructure availability and international market conditions. For Brazil, the main challenge will be to move more projects from the investment pipeline into operation and increase its role in the global supply of strategic minerals.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).