Viridis targets US, Europe rare earth deals amid China pushback

Viridis Mining and Minerals Ltd. is in talks with prospective buyers of rare earths mined in Brazil, as Western nations look to reduce their reliance on China for elements used in electric vehicles and wind turbines. 

The Australian-listed mineral developer is holding discussions with potential off-takers from the US and Europe and intends to sign up multiple buyers, including rare-earth refineries and magnet makers, Brazil country manager Klaus Petersen said in an interview. 

The negotiations include setting a minimum price for output from Viridis’s $360 million Colossus project in the state of Minas Gerais, Petersen said. A floor price would provide protection against low prices set in China, which accounts for about 90% of global rare-earth permanent magnet production.

The talks come as Europe and Brazil move closer to a political agreement on critical raw materials. European Commission President Ursula von der Leyen has said such a deal would frame cooperation on joint investments in lithium, nickel and rare earths — materials she described as central to strategic independence in “a world where minerals tend to become an instrument of coercion.”

Brazil holds the largest rare-earth reserves after China but has little commercial production. The country is seeking to tap much more of its geological potential, while junior miners developing critical-minerals projects push for financial guarantees to better access funding.

Viridis plans to make a final investment decision in the second half of the year, with a view to starting production by 2028.

(By Mariana Durao)