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Brazil, Chile's Ionic Clay Discovery Shakes Up Global Rare Earth Supply

Brazil and Chile's ionic clay deposits could revolutionize rare earth mining. These discoveries offer a more sustainable, cost-effective way to extract vital materials, potentially easing supply concerns.

In this image I can see the ground, few rocks which are white and ash in color and few plants.
In this image I can see the ground, few rocks which are white and ash in color and few plants.

Brazil, Chile's Ionic Clay Discovery Shakes Up Global Rare Earth Supply

A geological breakthrough is reshaping the global rare earth element (REE) supply landscape. Brazil and Chile have discovered significant deposits of ionic clay, a rare earth-rich mineral that could challenge China's dominance in this critical sector.

Ionic clays are unique because they contain high concentrations of heavy rare earths, which are easier to extract than traditional hard rock sources. This discovery marks a significant shift in global REE supply dynamics, potentially enhancing energy security for these vital materials that power modern technology.

The demand for heavy rare earths, such as dysprosium and terbium, is surging due to their irreplaceable role in enhancing the temperature resistance of permanent magnets. Current annual demand stands at approximately 2,500 tons, projected to double by 2030. However, production capacity outside China is limited, and recent export controls threaten to exacerbate a looming supply-demand imbalance.

Brazil's Carina project in Goias state is one of South America's most promising rare earth developments. These ionic clay deposits offer remarkable advantages over conventional hard-rock mining. They have a significantly reduced environmental footprint, lower capital and operational costs, and eliminate radioactive waste management issues. Moreover, they contain higher concentrations of valuable heavy rare earth elements (HREEs) and are compatible with in-situ recovery methods that minimize surface disturbance.

Until recently, economically viable ionic clay deposits were primarily confined to southern China and parts of Southeast Asia, creating a natural geographic monopoly that reinforced China's dominance in heavy rare earth production. The discovery of similar formations in Brazil and Chile represents a geological anomaly of significant strategic importance, potentially breaking the geographic concentration of heavy rare earth supplies and diversifying global production.

The discovery of ionic clay rare earth deposits in Brazil and Chile could be a game-changer for global REE supply. These deposits offer a more sustainable and cost-effective extraction method, potentially easing the strain on global supply and reducing dependence on a single supplier. As demand for heavy rare earths continues to grow, driven by the increasing adoption of high-performance magnets, the strategic importance of these deposits cannot be overstated.

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