Rare Earths: Latin America Eyes Supply Alternatives

Rare earth elements — prized for their magnetic, electrochemical and luminescent properties — are essential to electric vehicle motors, wind turbines, batteries and many high-tech systems. China dominates production and refining, giving it a strategic edge in global supply chains and prompting concern among import-dependent economies. Growing demand for permanent-magnet materials and battery components is driving an accelerated global scramble for deposits and processing capacity. Latin America holds significant mineral potential: Brazil reports about 21 million tonnes of rare earth reserves, close to Vietnam and behind China, while the region overall hosts major copper, lithium and battery-metal deposits. The International Energy Agency projects a sharp rise in extraction to meet demand for magnets and clean-energy technologies, with substantial growth expected by 2030–2040 if investment and processing capacity expand. In Colombia, the Orinoquia region — notably Vichada — has drawn interest from junior miners such as Auxico Resources, with land purchases raising questions about legal clarity, social consent and environmental impact. Extractive zones often overlap areas influenced by illegal armed groups, complicating governance, oversight and community protections. The widening rare-earth rush is reshaping geopolitics and mining strategies, underscoring the need for transparent legal frameworks, local engagement and investment in downstream processing to capture more value regionally.