As global industries pivot toward clean energy, electric mobility, and advanced electronics, the demand for rare earth elements (REEs) has surged to unprecedented levels. South America—long known for its rich reserves of copper, lithium, and gold—is now entering the spotlight for its potential to become a significant player in rare earth mining. With nations like Brazil, Chile, Argentina, and Colombia showing increasing geological promise, the region may soon emerge as a strategic supplier in a market dominated by China.
What Are Rare Earth Elements?
Rare earth elements (REEs) are a group of 17 chemically similar elements, divided into:
Light Rare Earth Elements (LREEs)
- Lanthanum (La) – Used in batteries, cameras, and glass.
- Cerium (Ce) – Key in catalytic converters and glass polishing.
- Praseodymium (Pr) – Essential for magnets and aircraft engines.
- Neodymium (Nd) – Used in high-strength permanent magnets.
- Promethium (Pm) – Rare and mostly synthetic, used in nuclear batteries.
- Samarium (Sm) – Applied in magnets and nuclear reactors.
- Europium (Eu) – Crucial for red and blue phosphors in TVs and LEDs.
Heavy Rare Earth Elements (HREEs)
- Gadolinium (Gd) – Used in MRI contrast agents and nuclear reactors.
- Terbium (Tb) – Used in green phosphors and solid-state devices.
- Dysprosium (Dy) – Enhances high-temperature magnets.
- Holmium (Ho) – Used in lasers and magnetic materials.
- Erbium (Er) – Key for fiber-optic communication.
- Thulium (Tm) – Used in portable X-ray machines.
- Ytterbium (Yb) – Employed in electronics and quantum research.
- Lutetium (Lu) – Used in PET scanners and cancer treatment.
- Scandium (Sc) – Important for aerospace aluminum alloys.
- Yttrium (Y) – Vital in ceramics, LEDs, and superconductors.
Geological Promise in South America
- Brazil – Home to Araxá and Morro do Ferro, rich in LREEs and HREEs.
- Chile – Penco deposit in Biobío has high-value dysprosium, terbium, praseodymium.
- Argentina – Monazite-rich areas in Salta and Jujuy show promise.
- Colombia – Early-stage exploration revealing monazite and bastnäsite deposits.
Key Opportunities
1. Energy Transition & Green Technology
South America’s rare earths are crucial for high-performance magnets in EVs and wind turbines.
2. Regional Value Chain Development
Countries can benefit from refining and manufacturing locally, not just exporting raw materials.
3. Geopolitical Leverage
With Western countries diversifying away from China, South America could be a preferred supplier.
4. Job Creation and Tech Investment
REEs can stimulate FDI, innovation, and skilled employment in rural zones.
Policy Landscape by Country
Brazil
Under the National Mining Plan 2050, Brazil promotes rare earth development via PPPs. CBMM is leading investment in processing capabilities.
Chile
Chile’s rare earth strategy mirrors its lithium approach: state-private alliances, with Penco gaining government interest for its low-impact methods.
Argentina
Mining-friendly with FDI incentives, but needs better regulatory cohesion across provinces.
Colombia
Lists REEs as strategic minerals. Recent reforms aim to streamline permitting while ensuring environmental standards.
Environmental and Social Responsibility
Rare earth extraction can generate waste and radioactivity (especially from monazite). Chile’s Aclara project stands out for its non-radioactive clay and closed-loop water system. Community engagement is essential across the region.
Strategic Rare Earths Breakdown
| Element | Key Use | Country Potential |
|---|---|---|
| Lanthanum (La) | Batteries, optics | Brazil, Argentina |
| Cerium (Ce) | Catalysts, polishing | Brazil, Chile |
| Praseodymium (Pr) | Magnets, engines | Chile, Brazil |
| Neodymium (Nd) | EVs, wind turbines | Chile, Brazil |
| Promethium (Pm) | Nuclear batteries | N/A |
| Samarium (Sm) | Magnets, reactors | Brazil |
| Europium (Eu) | TVs, LEDs | Argentina, Brazil |
| Gadolinium (Gd) | MRI, neutron capture | Brazil |
| Terbium (Tb) | Phosphors, devices | Chile |
| Dysprosium (Dy) | High-temp magnets | Chile, Brazil |
| Holmium (Ho) | Lasers, magnets | Argentina, Brazil |
| Erbium (Er) | Fiber optics | Brazil |
| Thulium (Tm) | X-ray devices | Brazil |
| Ytterbium (Yb) | Electronics | Brazil, Colombia |
| Lutetium (Lu) | PET scanners | Brazil |
| Scandium (Sc) | Aerospace alloys | Brazil |
| Yttrium (Y) | LEDs, ceramics | Brazil, Argentina |
Challenges & Strategic Path Forward
- Lack of local refining – No major REE processing hubs yet.
- Regulatory complexity – Each country has unique permitting structures.
- Need for better mapping – More exploration investment is needed.
- Social license – Proactive engagement with communities is essential.
Conclusion
South America’s rare earth future is just beginning—but it holds extraordinary potential. With strategic policies, environmental responsibility, and international collaboration, Brazil, Chile, Argentina, and Colombia could play a vital role in building the world’s clean, connected, and decarbonized economy.
Stay tuned to Minener.com for more insights into Latin America’s energy and mining future.
