U.S. Department of War Invests $750 Million in Brazil Mine

The United States Department of War announced a $750 million investment on August 24 to secure long-term supplies of critical rare-earth elements from the Pela Ema mine in central Brazil. This funding is part of a larger $1.55 billion financing and purchasing structure that includes $300 million from the Defense Logistics Agency and $500 million from a commercial bank.

The initiative targets the procurement of dysprosium, terbium, neodymium, and praseodymium. These elements are essential for high-performance permanent magnets used in drones, nuclear submarines, and fighter aircraft. The investment aims to reduce U.S. reliance on China for these materials.

This effort complements a separate $565 million financing agreement provided via the U.S. International Development Finance Corporation to establish a mine-to-magnet supply chain outside of Chinese control. Mike Cadenazzi, the Assistant Secretary of War for Industrial Base Policy, stated that the partnership with Serra Verde is a decisive step to break the near-monopoly adversaries hold on rare-earth elements.