Brazilian Rare Earths to sell feedstocks to Carester

Australia-listed Brazilian Rare Earths said on Thursday that it has signed agreements with Carester SAS for the supply of heavy rare earths feedstocks over an initial period of ten years.

Carester will also provide engineering and technical services for Brazilian Rare Earths’ planned separation plant at the Camaçari Petrochemical Complex located in Brazil’s Bahia.

The processor will buy a maximum of 150 tonnes per annum of contained dysprosium and terbium from Brazilian Rare Earths over the ten-year term.

The partnership aims to tackle the shortage of critical minerals dysprosium and terbium, essential for the production of high-performance permanent magnets, and comes at a time when western countries seek to rely less on the China-dominated supply chain.

Carester, for instance, is building a rare earth separation and recycling plant which has received a backing of over 216 million euros ($251.25 million) from the French government and Japanese entities.

“Teaming with Carester gives us the technical depth and downstream capacity to rapidly convert our ultra high-grade rare earths into the vital products customers need.” said Bernardo da Veiga, CEO of Brazilian Rare Earths.

The push for a more diversified supply chain is gaining urgency as critical minerals, vital to industries ranging from electric vehicles and robotics to national defense, remain largely under China’s control.

($1 = 0.8597 euros)

(By Nichiket Sunil; Editing by Shailesh Kuber)