Brazil is emerging as an alternative source of rare earths as the United States, Australia and other countries seek to reduce reliance on China. An analysis of National Mining Agency records through June by The Associated Press and Reporter Brasil found 2,727 rare-earth exploration applications, with 42% submitted by subsidiaries of foreign mining companies or firms with foreign ownership stakes. Eleven of the 20 largest applicants have foreign backing, mostly from Australia, the U.S. and Canada, and more than 86% of applications were filed in the past three years, including 268 in the first half of 2026. Brazil holds an estimated 21 million metric tons of rare-earth reserves, second only to China, but currently produces about 2,000 tons annually versus China’s roughly 270,000 tons. Serra Verde Pela Ema in Goiás, Brazil’s first operational large-scale rare-earth mine, began commercial production in early 2024 and targets 6,400 to 6,500 metric tons of rare-earth oxides annually by 2027. It is the only current non-Asian operation producing all four critical magnet elements: neodymium, praseodymium, dysprosium and terbium. The U.S. International Development Finance Corporation provided a $565 million financing package or loan, while USA Rare Earth announced an approximately $2.8 billion acquisition finalized in June 2026. The sources also report separate U.S. government support proposals, including up to $1.6 billion from the Department of Commerce and up to $750 million in offtake support from the Department of War’s Economic Defense Unit. Brazil’s expansion faces environmental risks, with at least 25% of applications overlapping with or lying within 10 kilometers of 283 protected areas and Indigenous territories. Domestic separation and refining capacity is not expected before 2030, meaning early output will likely be exported in partially processed form. Brazil says it will not take sides in the U.S.-China dispute and wants investment to include technology transfer and domestic processing.