Lynas plans Brazil rare earths plant with state support

Brazilian officials see the proposed separation facility as a regional processing hub, with BNDES considering financing.

Lynas Rare Earths (ASX: LYC) has presented plans to build a rare earth oxide separation plant in Brazil’s Minas Gerais state, Mines and Energy Minister Alexandre Silveira told MINING.COM, as the government considers backing a project that could become one of the largest such facilities outside China.

The proposal forms part of Lynas’ expansion into Brazil through its $672 million acquisition of Meteoric Resources , whose Caldeira project hosts one of the world’s largest known ionic-clay rare earth deposits outside China.

State development bank BNDES is evaluating potential financing, according to people familiar with the discussions.

“The project to implement a rare earth oxide separation plant in the Poços de Caldas region, presented by the company, could be a milestone for Brazil to advance through different stages of the value chain, adding value to our product and moving the country away from being merely an exporter of raw materials,” Silveira said in written comments.

The proposed facility would give Brazil a foothold in commercial-scale rare earth separation, an industry dominated by China, while potentially creating processing capacity for other ionic-clay deposits being developed in southern Minas Gerais.

People familiar with the discussions told MINING.COM that negotiations are more advanced than Lynas’ public disclosures suggest, with a preliminary understanding around establishing separation capacity in Brazil.

Lynas Rare Earths (ASX: LYC) has presented plans to build a rare earth oxide separation plant in Brazil’s Minas Gerais state, Mines and Energy Minister Alexandre Silveira told MINING.COM, as the government considers backing a project that could become one of the largest such facilities outside China.

The proposal forms part of Lynas’ expansion into Brazil through its $672 million acquisition of Meteoric Resources , whose Caldeira project hosts one of the world’s largest known ionic-clay rare earth deposits outside China.

State development bank BNDES is evaluating potential financing, according to people familiar with the discussions.

“The project to implement a rare earth oxide separation plant in the Poços de Caldas region, presented by the company, could be a milestone for Brazil to advance through different stages of the value chain, adding value to our product and moving the country away from being merely an exporter of raw materials,” Silveira said in written comments.

The proposed facility would give Brazil a foothold in commercial-scale rare earth separation, an industry dominated by China, while potentially creating processing capacity for other ionic-clay deposits being developed in southern Minas Gerais.

People familiar with the discussions told MINING.COM that negotiations are more advanced than Lynas’ public disclosures suggest, with a preliminary understanding around establishing separation capacity in Brazil.

BNDES is expected to conduct a technical visit to Lynas’ Australian operations before the end of 2026 as discussions progress.

The financing structure and final investment decision remain undetermined.

Asked about it, Lynas said it recognizes the strategic potential of the Caldeira Project and the opportunities to develop the rare earths value chain in Brazil.

“Meteoric and Lynas bring extensive Brazilian experience and technical expertise to the project.

We have made no commitments to date but will actively assess opportunities for further investment in Brazil,” a spokesperson told MINING.COM.

“The Caldeira project has a strategic position in the global rare earths market.