Brazil's rare earth magnet production delayed until at least 2032, China dominance persists

Brazil will not produce rare earth magnets from domestically sourced raw materials until at least 2032, leaving China's dominance over the critical technology unchallenged for the remainder of the decade.

Andre Luis Pimenta de Faria, coordinator of Brazil's main magnet pilot plant operated by Senai, the research and training arm of the country's national industry confederation, told a public policy panel Wednesday that the country faces a protracted timeline despite holding vast rare earth reserves. Speaking at Exposibram, Brazil's largest mining congress, Faria said the plant could deliver its first batches by the end of 2028, but only by relying on imported inputs rather than Brazilian ore.

Technology and infrastructure gaps widen timeline

The pilot plant operates on Asian process technology selected during its design phase and currently purchases processed ore from abroad to feed its furnaces. Brazil also lacks production capacity for electrolytic iron, a high-purity input essential for magnet manufacturing that differs significantly from the iron ore the country exports in massive volumes as one of the world's two largest suppliers.

"If we look at the full picture of everything needed to produce a permanent magnet, we are talking about a more distant horizon, maybe 2032, 2035," Faria said.

Industry voices caution on optimistic projections

Pablo Cesario, chief executive of the Brazilian Mining Institute, described even Faria's timeline as overly hopeful. He noted that the average gap between proven reserves and first production in Brazil stretches to 17.2 years.

"This is a 10 or 15-year game. And in those 10 or 15 years the others are running too," Cesario said, underscoring the moving-target nature of global competition in rare earth processing.

The assessment highlights the gulf between Brazil's raw material wealth and its ability to capture value further along the supply chain, where China has built a near monopoly on transforming rare earths into permanent magnets used in electric vehicles, wind turbines, and electronics.

Source: South China Morning Post