By Brazil Stock Guide – Viridis Mining and Minerals is in negotiations with potential buyers in the U.S. and Europe to supply rare earths produced in Brazil, as Western economies accelerate efforts to diversify supply chains away from China for materials used in electric vehicles and wind turbines.
The Australian mineral development company is holding talks with multiple prospective customers, including rare-earth refiners and magnet manufacturers, according to Klaus Petersen, the head of Viridis’ operations in Brazil. The company aims to secure contracts with several clients rather than relying on a single off-taker.
Petersen said the discussions include setting a minimum price for output from Viridis’ Colossus project in the state of Minas Gerais, which has an estimated value of about $360 million. A price floor would help shield the project from low-priced competition from China, which accounts for roughly 90% of global production of permanent rare-earth magnets.
Establishing a guaranteed minimum price is seen as critical for non-Chinese projects, particularly as Beijing’s dominance has kept global prices under pressure. For smaller mining companies developing critical minerals, such safeguards are also key to unlocking financing and reducing investor risk.
The commercial talks are taking place against a broader geopolitical backdrop. Brazil and the European Union are moving closer to a political agreement focused on strategic raw materials, including joint investments in lithium, nickel and rare earths. European Commission President Ursula von der Leyen has said such materials are essential to strategic autonomy in “a world where minerals tend to become an instrument of coercion.”
Brazil holds the world’s second-largest rare-earth reserves after China, but commercial production remains limited. The country is seeking to develop its geological potential as miners advance projects aimed at supplying critical minerals to global markets.
Viridis plans to make a final investment decision in the second half of this year and is targeting the start of production in 2028.
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