Rare Earths Properties

Rare Earths
Ownership 100%
Minas Gerais, Goiás

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Overview

Rare earth elements, or simply “rare earths”, are a group of 17 chemically similar elements that include the 15 lanthanides, along with scandium and yttrium. These elements are not particularly rare in terms of abundance in the Earth’s crust; however, they are rarely found in economically exploitable concentrations. Rare earths are crucial for a variety of modern technologies due to their unique properties, which allow them to enhance the performance of materials and devices. They are used in the production of strong permanent magnets, phosphors for lighting and displays, catalysts in petroleum refining, and in various electronic devices, including smartphones and electric vehicles.

China is the dominant player in the global rare earths market, holding the largest reserves and controlling a significant portion of the processing capacity. According to the U.S. Geological Survey, China possesses approximately 44 million metric tons of rare earth reserves, which accounts for a substantial share of the world’s total. Other countries with notable reserves include Brazil, with 21 million metric tons; India, with 6.9 million metric tons; and Australia, with 5.7 million metric tons. Despite these reserves, many countries struggle to compete with China’s established supply chain and processing capabilities, which have been developed over decades. As a result, China has maintained a near-monopoly on the processing of rare earths, refining over 85% of the global supply. Rare earths have been on the list of minerals considered critical to the economic and national security of the United States since first published by the U.S. Department of the Interior on May 18, 2018.

The uses of rare earths are extensive and critical to various industries. In the renewable energy sector, rare earths are essential for manufacturing high-performance magnets used in wind turbines and electric vehicles. For instance, neodymium and dysprosium are key components in the production of strong permanent magnets that improve the efficiency and durability of these technologies. Additionally, rare earths are used in the production of catalysts for refining petroleum, which is vital for the energy sector, as well as in the manufacturing of advanced electronics, including smartphones, tablets, and televisions. The demand for these elements is expected to grow significantly as the world shifts towards cleaner energy solutions and advanced technologies.

The importance of rare earths to the U.S. economy cannot be overstated. As the U.S. aims to enhance its technological capabilities and reduce reliance on foreign sources, securing a stable supply of rare earths has become a national priority. The U.S. currently holds about 1.9 million metric tons of rare earth reserves, primarily located at the Mountain Pass mine in California. However, the country is heavily dependent on imports, with over 60% of its rare earths coming from China. This reliance poses significant risks, particularly in light of ongoing trade tensions and geopolitical challenges. The U.S. government has recognized the strategic importance of rare earths and is actively seeking to bolster domestic production and processing capabilities to ensure a resilient supply chain for critical minerals.

In conclusion, rare earth elements are vital to modern technology and renewable energy solutions, with China currently dominating the market in both reserves and processing. Other countries, such as Brazil and Australia, hold significant reserves but face challenges in competing with China’s established infrastructure. As the U.S. economy increasingly relies on advanced technologies, securing a stable supply of rare earths is essential for maintaining competitiveness and national security.

The 17 rare earths elements are (name / symbol / atomic number):

  1.  Scandium (Sc): 21
  2. Yttrium (Y): 39
  3. Lanthanum (La): 57
  4. Cerium (Ce): 58
  5. Praseodymium (Pr): 59
  6. Neodymium (Nd): 60
  7. Promethium (Pm): 61
  8. Samarium (Sm): 62
  9. Europium (Eu): 63
  10. Gadolinium (Gd): 64
  11. Terbium (Tb): 65
  12.  Dysprosium (Dy): 66
  13. Holmium (Ho): 67
  14. Erbium (Er): 68
  15. Thulium (Tm): 69
  16. Ytterbium (Yb): 70
  17. Lutetium (Lu): 71

Rare earths (“REEs”) are classified as “light” and “heavy” based on atomic number.

Light REEs (“LREEs”) are comprised of lanthanum through gadolinium (atomic numbers 57 through 64).

Heavy REEs (“HREEs”) are comprised of terbium through lutetium (atomic numbers 65 through 71) and yttrium (atomic number 39), which has similar chemical and physical attributes to the HREEs.

HREEs tend to be less abundant and more expensive than LREEs.

Neodymium and praseodymium are key critical materials in the manufacturing of magnets that have the highest magnetic strength among commercially available magnets and enable high energy density and high energy efficiency in diverse uses.

Dysprosium and terbium are key critical materials often added to the magnet alloys to increase the operating temperature.

Some uses for other rare earth elements include:

  • Scandium: Critical for aerospace alloys. The U.S. imports 100% from China and Russia.
  • Yttrium: Used in radar systems and superconductors. The U.S. is 100% import-dependent, with 94% from China.
  • Neodymium: Critical for permanent magnets used in electric vehicles, wind turbines, and drones. China controls 70% of production.
  • Terbium: Essential for lasers and sonar systems. China controls 90% of global supply.
  • Dysprosium: Used in magnets for drones and wind turbines. China supplies 85% globally.

Rare Earths in Brazil

Brazil has significant potential for rare earths, which are critical for various high-tech applications, including electric vehicles, renewable energy technologies, and advanced electronics. The country is believed to possess the third-largest reserves of rare earth metals globally, with estimates suggesting around 22 million tonnes of these valuable minerals, primarily located in states such as Minas Gerais, Bahia, Goiás, and São Paulo. The Serra Verde project, Brazil’s first integrated rare earth mine, began operations recently and is expected to produce approximately 5,000 tons of rare earth oxides annually, focusing on essential elements like neodymium and praseodymium.

Despite these promising reserves, Brazil faces challenges in developing its rare earth industry, including low global prices for rare earth metals and the need for advanced processing technologies, which are currently dominated by a few players, primarily in China. However, the Brazilian government is actively supporting the sector, having allocated $195 million to finance important mineral projects, including rare earths, and is exploring recycling initiatives to enhance supply chain sustainability. With continued investment and strategic development, Brazil could emerge as a key player in the global rare earth market, potentially reducing reliance on Chinese supplies and strengthening its position in the international minerals landscape.

View our Corporate Presentation for more details on our Rare Earth Portfolio

June 3, 2025 Corporate Presentation Download

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Unless otherwise indicated, the scientific and technical information in this presentation has been reviewed and approved by Areli Nogueira, who is a Qualified Person for Lithium as such term is defined in Item 1300 of the U.S.’s Regulation S-K. Areli Nogueira is the Vice President of Mineral Exploration for Atlas Critical Minerals.

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