en.Wedoany.com Reported - The United States is accelerating its efforts to control Brazil's rare earth resources. The latest development shows that U.S.-based Ultra Rare Earth Inc. (URE) has taken control of Appia Brasil Rare Earths Mineração (ABREM), the owner of the PCH rare earth project in Cachoeirinha, Goiás State, Brazil.
At the end of last year, URE already held a 50% stake in ABREM, and the two parties recently reached an agreement to achieve full control of ABREM. Under a stock swap agreement, ABREM will hold a minority stake in URE. ABREM stated that Appia is a publicly traded Canadian company primarily involved in rare earths and uranium. After the stock swap, its shareholders will hold 25% of URE's shares, while URE will directly or indirectly hold full interests in the Ultra Hard Rock and Ultra IAC projects. Both projects are located in Goiás State, covering a total area of 42,932.2 hectares.
Meanwhile, Brazilian-owned Terra Brasil Minerals (TBM) has signed a letter of intent with the U.S. federal government's overseas investment agency, the International Development Finance Corporation (IDFC), to sell a minority stake in one of Brazil's large phosphorus-titanium-potassium-rare earth projects. According to local media reports, a memorandum signed between TBM and IDFC indicates that the transaction is expected to be announced within the next two months.
Brazil holds the world's second-largest rare earth reserves, and the U.S. has identified the country as a key target for securing rare earth resources critical to defense and high-tech industries. In April, USA Rare Earth (USARE) announced a $2.8 billion acquisition of Serra Verde, which owns the Pela Ema rare earth mine and processing plant in Goiás State. In addition to taking control of the company, the deal also grants USARE a 15-year exclusive offtake agreement. Furthermore, Toronto-based Aclara Resources received financial support from IDFC at the end of last year to advance its Carina rare earth project in Goiás State.
Mário Sérgio Lima, a senior political analyst at Medley Global Advisors, believes that both the U.S. and Brazilian governments understand that strengthening cooperation in the rare earth sector benefits both sides: Brazil can attract investment to develop rare earth projects, while the U.S. secures rare earth supplies. After a period of strained relations, rare earths are bringing the Brazilian and U.S. governments back together. In the middle of last year, U.S. President Donald Trump announced a 50% tariff on Brazilian exports, leading to tensions between the two countries for political reasons. However, in recent months, bilateral relations have begun to ease.
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