Critical Minerals: Why Is the World Turning Its Attention to Brazil’s Rare Earths and Niobium?

Critical minerals are essential resources for strategic sectors such as energy, technology, and defense, whose supply chains pose significant risks, whether due to geological scarcity or the concentration of production in a few countries.
Among the most relevant examples are niobium and rare earth elements (REEs). These materials perform specific and often irreplaceable functions in a variety of applications:

•      Electric vehicle batteries and large-scale energy storage systems;

•      High-power permanent magnets in wind turbines and electric motors;

•      Semiconductors, solar panels, and advanced electronic components;

Defense systems, aeronautics, and communications infrastructure.
Their critical importance stems from two main factors: their growing significance in enabling low-carbon technologies and the vulnerability of their supply chains, which are often concentrated in just a few countries and subject to political and commercial instability. This importance is formalized through official lists compiled by sectoral and government agencies, such as the list of Strategic Minerals from the Brazilian Institute of Mining (IBRAM), the National Mining Agency (ANM), and the Ministry of Mines and Energy (MME) in Brazil, as well as the European Union’s (EU) list of Critical Raw Materials, which periodically reviews which elements are vital to global economic and technological security. Thus, more than just inputs in

•      Electric mobility: A single electric vehicle motor can contain up to 2 kg of rare-earth permanent magnets (NdFeB). With hundreds of millions of electric vehicles projected over the coming decades, demand for these elements is expected to grow exponentially.

•      Wind Energy: Large wind turbines with permanent magnet generators use between 200 kg and 2 metric tons of rare earths per unit, depending on installed capacity.

•      High-Performance Semiconductors and Chips: Rare earth elements are essential in the manufacture of ceramic capacitors and integrated circuit components that reduce energy loss and heat generated during the processing of large volumes of data.

•      Defense and aerospace: Radars, guidance systems, military communications, and night vision equipment rely directly on rare earth elements.

To gain a deeper understanding of what rare earth elements are, their characteristics, and their applications, check out the full content on rare earth elements on our website.

Brazil holds a dominant position in the global niobium market. According to data from the Geological Survey of Brazil (SGB) and the U.S. Geological Survey (USGS), the country accounts for approximately 90% of global production and holds about 94% of the metal’s known reserves, establishing itself as the world’s leading supplier of niobium.

The applications of niobium are vast and strategic, based on its unique ability to impart strength and lightness to metal alloys. They are found in the steel, aerospace, healthcare, and energy sectors.

Among its various applications, in the steel industry, the addition of small amounts of this metal (ferroniobium) transforms ordinary steel into High-Strength Low-Alloy (HSLA) steels, which are essential for the construction of bridges, overpasses, and gas pipelines that must withstand extreme conditions. The aerospace industry uses niobium in vacuum-grade superalloys for aircraft turbine components and rocket nozzles, due to its extremely high melting point and thermal resistance. Recently, niobium oxide has also revolutionized the battery market, enabling ultra-fast charging in less than 10 minutes and increasing the lifespan and safety of electric vehicles.

Brazil’s dominant position in niobium did not go unnoticed by global powers. In 2010, U.S. diplomatic documents released by WikiLeaks revealed that the U.S. State Department viewed access to Brazilian niobium as a strategic issue for the country’s national security, even amid ample supply and without any threat of a supply disruption.

The international perception of the mineral’s strategic value soon translated into concrete market moves. In 2011, a consortium of Chinese, Japanese, and South Korean companies acquired a 30% stake in CBMM—the world’s largest niobium producer, headquartered in Araxá (MG)—for $4 billion. The transaction demonstrated that the interest was not purely commercial: the goal was to secure access to a resource with no viable substitutes in various high-performance industrial applications.

CBMM, however, retained operational control of the company and did not relinquish its proprietary processing method—an industrial secret comprising fifteen internally developed stages. This technological expertise is what sets Brazil apart from mere ore exporters: the country exports processed niobium, capturing added value throughout the production chain.

This model—abundant reserves combined with technological expertise in processing—is precisely what Brazil needs to replicate in the rare earths sector to consolidate its leading role in today’s mineral economy.

The growing global interest in critical minerals is a direct result of the ongoing technological transformations.

Niobium and rare earth elements have come to occupy a strategic position in the context of the energy transition and the global quest for security in the supply of critical minerals.

Brazil possesses unique comparative advantages: dominance in global niobium reserves and production, world-class rare earth reserves, and a proven track record of technological capability in mining. Transforming these advantages into effective leadership, however, will require much more than geological wealth; it will require industrialization, governance, infrastructure, and a long-term strategic vision.

The window of opportunity is open. What will determine whether Brazil positions itself as a commodity supplier or as a central player in the mineral economy of the current century is, fundamentally, a choice of industrial policy and national development.

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