Brazilian firm Viridis has opened a demonstration plant that could supply the EU with rare earths in two years, a move that could end China’s near‑total control of the commodity.
China’s rare‑earth monopoly
China supplies around 80 per cent of the world’s rare‑earth ore, and the country has long used its market power to influence global trade. The European Union imports almost all of its critical raw materials from Beijing‑controlled mines, a dependency that has drawn warnings from policymakers and industry leaders alike.
According to the Guardian, the head of Viridis, Rafael Moreno, described the market as “nervous” amid the looming Trump‑Xi summit, which could shape the terms of any future supply agreements.
Brazil’s bid to break the stranglehold
Viridis has set up a pilot plant in the state of Minas Gerais, where the company claims it can produce rare‑earth concentrates at a cost competitive with Chinese output. The facility is still in the testing phase, but the company says it is ready to scale up if the EU gives the green light.
Moreno said the project “has the potential to deliver a supply chain that is both secure and environmentally responsible.” The plant uses a new extraction process that claims to reduce the waste output of the rare‑earth separation stage.
Strategic stakes for the EU
Rare earths are a key component of electric‑vehicle batteries, wind‑turbine magnets, and military aircraft. The EU’s “Fit for 55” climate package and defence procurement plans both rely on a stable supply of the minerals.
EU officials have been seeking alternative sources to reduce dependence on China, and Viridis’s Brazilian plant is one of several projects under consideration. A report by the European Commission notes that diversification could take at least two to three years, making the timing of any deal crucial.
Diplomatic timing with the Trump‑Xi summit
The United States and China are set to meet on Thursday for a second summit of the year. While the talks are expected to cover a range of issues—from trade to security—analysts say that a discussion on critical minerals could be on the agenda.
Moreno said it would be “imperative” that Beijing ease its pressure on the global rare‑earth market and that any new deals would be “paramount” for European supply chains. He added that the EU would be willing to engage if the US and China sign a framework to open up the market.
The potential for a new supply contract could influence the dynamics of the summit, with Washington and Beijing both keen to demonstrate leadership in securing vital resources for allies.
As the EU weighs its options, the world watches the outcome of the Trump‑Xi talks, which may set the tone for future trade and security agreements that could reshape the rare‑earth landscape.
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