What's Happening?
Viridis Mining & Minerals, an Australian mining company, has announced the creation of a rare earth research and processing center in Poços de Caldas, Brazil. This initiative aims to reduce Western dependence on China, which currently dominates over 80%
of global refining of these strategic minerals. The center will focus on the experimental production of mixed rare earth carbonate, essential for refining these minerals. The project is part of the Colossus Project, which seeks to explore reserves of ionic clays rich in rare earths. The center is expected to begin operations by the second quarter of 2026, with a capacity to process 100 kilograms of raw ore per hour.
Why It's Important?
The establishment of this center is significant as it represents a strategic move to diversify supply chains and reduce global dependence on China for critical minerals. These minerals are essential for clean and sustainable technologies, including wind turbines and electric vehicles. By positioning Brazil as a key partner in the production of these minerals, the initiative supports the energy transition and strengthens Western autonomy in strategic sectors. The project also emphasizes environmental sustainability, with Viridis Mining & Minerals prioritizing environmental licensing and adhering to international sustainability standards.
What's Next?
The center will produce qualified samples for potential partners, attracting investors through advance contracts for future production. Viridis Mining & Minerals is awaiting the release of the preliminary environmental license, with the definitive feasibility study expected to be completed by June 2026. The project aims to ensure complete independence from the Chinese supply chain, reducing vulnerabilities and ensuring stability in global supply. As operations commence, Brazil is set to become a new global hub for sustainable rare earth supply, reinforcing its position in the global energy transition.
Beyond the Headlines
The decision to eliminate Chinese inputs and technology reflects a long-term strategy to ensure technological independence and stability in global supply chains. This proactive approach protects Viridis from potential delays and restrictions, reinforcing the technological autonomy of the West. The initiative highlights the importance of diversifying supply chains and reducing reliance on a single country for critical resources, which is crucial for maintaining geopolitical stability and advancing sustainable technologies.
