Brazil has become a major destination for billions of dollars in rare earth investments from the United States and China, according to a recent analysis by The Economist.

U.S. Investment Focus

The U.S. has focused its investment on the Serra Verde mine, which produces four of the world's rarest minerals, with a total investment approaching US$ 5 billion, including a US$ 2.8 billion acquisition and a loan from the U.S. Development Finance Corporation.

China’s Allocation

China’s investment in Brazil reached US$ 6 billion last year, the largest single-country allocation by Chinese firms, according to The Economist.

Strategic Context

The competition between the two powers reflects a broader strategy to secure critical raw materials for artificial intelligence, electrification and national security, reducing reliance on rival suppliers.