Silveira Capital participates in InfoMoney's article on Rare Earths in Brazil: risks and opportunities highlighted
InfoMoney recently published the article “Is it worth investing in rare earths in Brazil? Discover the risks and opportunities” by journalist Lucas Gabriel Marins, offering a comprehensive overview of this strategic sector. The report featured the participation of our managing partner Jéferson Silveira Martins, as a specialist in mergers & acquisitions (M&A) and mining business development. Below, we summarize the main points covered in the article—an essential read for anyone following the rare earths market and seeking to understand its perspectives.
Importance of Rare Earths and Global Demand:
Rare earths are a group of 17 chemical elements essential for modern technologies such as electric motors, wind turbine magnets, batteries, and high-performance electronics. Interest in the subject has grown again because Brazil has one of the largest reserves in the world and is the second-largest global producer, behind only China. With the increasing transition to clean energy and digitalization, global demand for rare earths is rising sharply. According to International Energy Agency data compiled by UBS, annual consumption of these minerals is expected to jump from 91,000 to 150,000 tons by 2040—an increase of 60% in just a few years. This trend reinforces the strategic relevance of rare earths, including their potential use as a diplomatic bargaining chip in trade negotiations, given that countries like the U.S. are heavily dependent on these high-tech inputs.
High Risk and Long-Term Horizon of Projects:
Despite their potential, investing in the rare earths sector is not for impatient or risk-averse investors. The article highlights that rare earth mining projects face above-average technical and financial challenges. As explained by Jéferson Silveira Martins in the interview, the first major risk is geological: in the early stages, it is uncertain what lies underground, requiring significant investment in surveys to understand the mineral deposit. Even after confirming geological viability, the mining company needs to raise substantial capital to build the processing plant and infrastructure, which takes time and involves multiple stages. In addition, there are environmental procedures—in Brazil, the licensing process is complex and unpredictable, often causing significant delays. Added to this is the fact that the rare earths market is cyclical and volatile, depending on export policies (especially from China) and global industrial demand. The result: it is common for a project to take more than a decade to materialize—up to 16 years to begin operations, according to UBS estimates mentioned in the article.
Current Scenario in Brazil:
According to the report, there are currently about 30 rare earth projects in different stages of development in Brazil, spread across states such as Amazonas, Bahia, Goiás, Minas Gerais, Piauí, and Tocantins. However, only one project has so far reached the stage of commercial operation: the Serra Verde mine, in Minaçu (GO). Inaugurated in 2024 after 14 years of preparation and an investment of approximately US$150 million (funded by U.S. and U.K. investors), Serra Verde became Brazil’s first commercial-scale rare earth producer. It exploits an ionic clay deposit rich in elements such as neodymium (Nd), praseodymium (Pr), terbium (Tb), and dysprosium (Dy)—critical metals for the manufacture of permanent magnets used in turbines and electric motors. Although Brazil has large known reserves, the article points out that they are not fully exploited due to the high cost and complexity of extraction and separation technologies, forcing the country to continue importing refined rare earths, mainly from China. To unlock Brazil’s potential, advances in regulatory frameworks, agility in the licensing process for new mines, improved geological mapping of reserves, and greater market stability would be necessary—all of which are challenges highlighted by UBS in the article.
How to Invest in Rare Earths:
A central question of the article is whether and how investors can participate in this rare earths boom. Investing directly in mining projects in Brazil is not simple for individuals, since most companies in the sector are not listed locally. However, investors have two main alternatives:
Investing via foreign companies: Several international mining companies, mainly listed on the Australian and Canadian stock exchanges, are involved in rare earth projects in Brazil. Examples cited include Australian companies such as Viridis Mining and Meteoric Resources, among others, which are publicly traded on the Australian exchange and have invested in rare earth exploration in Brazil. Generally, these junior companies seek critical minerals here and raise funds in more mature markets, where investors are more accustomed to financing early-stage mining projects. “Many companies go public in Australia or Canada, countries that have more flexibility for early-stage mining businesses. It is a very common development model, both in Brazil and abroad,” explained Jéferson Silveira Martins. In other words, those wishing to invest in these initiatives can buy shares of these international companies through brokers that provide access to foreign exchanges.
Investing via ETFs or thematic funds: Another option highlighted is ETFs (Exchange Traded Funds) specialized in strategic metals. These index funds allow investors to gain exposure to the rare earths sector in a diversified way, reducing risks of individual projects. The article cites, for example, the VanEck Rare Earth/Strategic Metals (REMX) and Sprott Energy Transition Materials (SETM)—international ETFs that invest in a basket of companies linked to critical minerals. In addition to ETFs, there are investment funds and private equity vehicles focused on the theme, although generally aimed at qualified investors.
What to Watch Before Investing:
The high risk involved makes in-depth due diligence essential when selecting any rare earth-related asset. Professor Marcos Piellusch, from FIA Business School, highlights in the article some key indicators investors should check to assess the maturity and viability of a mining project:
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Measured resources and published studies: Verify whether the project has already carried out geological research and published results on the volume and grade of mineral reserves (e.g., JORC or NI 43-101 reports).
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Metallurgical or pilot tests: More advanced projects usually perform laboratory or pilot plant processing tests, proving the technical feasibility of extracting and separating rare earths.
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Environmental licenses granted: Obtaining licenses and authorizations indicates that the project has overcome important regulatory hurdles and can begin operations in compliance with standards.
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Binding offtake agreements: Preliminary contracts for the future sale of production or strategic partnerships suggest that there is demand for the final product, adding economic credibility to the project.
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Financing approved: Verify whether the company has already raised or secured the necessary capital (through investors, development banks, etc.) to finance the construction of the mine and plant.
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Construction underway: Signs that construction has begun (earthworks, equipment installation) prove that the project is progressing and closer to generating revenue.
According to Piellusch, projects supported by development banks (such as BNDES, for example) tend to have more rigorous and structured due diligence, which can increase investor confidence. In addition, Jéferson Silveira Martins emphasizes that it is essential to check the track record of the executives leading the company: investors should assess whether management has successfully brought other mining projects into operation in the past. Experienced and competent teams make all the difference in such a challenging sector.
Conclusion:
The InfoMoney article concludes that it is indeed worth keeping an eye on rare earths, but with realistic expectations. This is an investment for those who believe in the long-term fundamentals of this market and are willing to take risks and wait for projects to mature. We at Silveira Capital are proud to have contributed to this important discussion, providing our specialized perspective on such a relevant topic for the future of Brazilian industry and economy. We will continue to closely monitor the development of the rare earths sector and support clients and partners in navigating the opportunities and challenges it presents.
For more details, we recommend reading the full article on InfoMoney (08/19/2025): Vale a pena investir nas terras raras no Brasil? Conheça os riscos e oportunidades. We are, of course, available to anyone wishing to discuss investment strategies and business development in the field of strategic minerals.
About the Author
Jéferson Silveira Martins is a specialist in mergers and acquisitions (M&A), business development, and investment fundraising in the agribusiness and mining sectors. As the founder of Silveira Capital, he leads strategic transactions, connecting investors with solid opportunities.
Learn more about Jéferson Silveira Martins and his career here: Jéferson Silveira Martins Bio
Disclaimer:
The information provided in this article is for informational and educational purposes only. It does not constitute financial, legal or accounting advice and should not be used as a substitute for consultation with qualified professionals. Silveira Capital is not responsible for any decisions made based on the information contained in this article. We recommend that you seek personalized professional advice before making decisions related to company valuation or financial transactions.