New Rare Earths Venture Targets High-Grade Assets in US and Brazil

Rare Earths Americas (REA), a private critical minerals company, has launched a new platform to explore and develop high-grade rare earth assets in the United States and Brazil in a bid to consolidate supply chains for various domestic sectors.

The company, which raised AU$25 million (approximately US$16 million) in a private funding round, said it combines experienced operators and investors with “deep expertise across global mining, energy and critical materials.”

Included in the company's four asset portfolio is the Foothills discovery, located in Georgia, USA, the site contains rare earth grades of up to 41.3 percent total rare earth oxides (TREO), including heavy rare earth elements crucial for high-performance magnets.

The project benefits from “outstanding logistics, low-cost power and streamlined permitting pathway,” the company said in an August 18 press release.

In Brazil, the Alpha and Constellation projects cover more than one billion metric tons of high-grade ionic clay rare earth mineralization, including dysprosium and terbium, which are essential for permanent magnets. The Homer project targets multiple carbonatite clusters with potential for rare earth and niobium discoveries in a region known for leading niobium mines.

“The rare earths market is undergoing a generational shift as the West races to secure its rare earths future,” said CEO Donald Swartz.

REA’s timing aligns with broader US efforts to reduce reliance on China, which currently controls nearly 70 percent of global rare earth processing and accounts for most heavy rare earth production.

In April, Beijing restricted shipments of seven rare earths to the US and other countries, prompting concern among automakers and defense contractors dependent on these materials.

The US government has recently proposed a pricing support mechanism for domestic rare earth ventures to increase production and mitigate China’s influence. Discussions last month, led by former White House trade advisor Peter Navarro and National Security Council official David Copley, included rare earth producers and major technology firms reliant on these critical minerals.

China’s dominance stems from billions of dollars invested in mining and processing since 2000, often with minimal environmental or safety oversight, allowing the country to produce rare earths at lower cost than Western competitors.

Meanwhile, the US response has included efforts to develop domestic mined supply and the build out of refinement, processing and production capacity. American companies have also sought to secure alternative sources in Africa and Latin America, but investment and technology barriers remain significant.

Mountain Pass in California, the country’s only large-scale rare earth mine, produces bastnaesite carbonate but relies heavily on foreign processing. MP Materials (NYSE:MP), the mine’s operator, posted a net loss of US$65.4 million in 2024, highlighting the challenge of competing with China’s low-cost production model.

REA’s launch positions it as a potential strategic player in this evolving landscape. The Foothills project offers a “streamlined permitting pathway” in the US, while the Alpha and Constellation projects in Brazil provide access to large-scale, high-grade heavy rare earths.

“With grade and strategic geography on our side, we intend to advance our rare earths projects to support the long-term supply of critical materials essential to domestic innovation,” Swartz added.

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.