Resouro Strategic Metals (ASX:RAU) is collaborating with the MagBras Initiative to establish a complete rare earth permanent magnet production supply chain in Brazil.
The MagBras Initiative, led by SENAI MG, SENAI SC, and Rede de Institutos, is a project focused on producing rare earth permanent magnets entirely within Brazil. The project aims to reduce reliance on imports, promote local innovation, and serve as a scalable model for domestic and international production.
Resouro, which has a market capitalisation of $19.78 million, will contribute US$35,000 in four tranches between May and November this year to advance the MagBras project’s vision of a competitive and domestic end-to-end production cycle.
The company will also provide its expertise and support, including rare earth product samples.
Executive Director Philippe Martins says this paves the way for Resouro to participate in a sustainable and fully integrated rare earth supply chain that will solidify Brazil’s position as a global leader in critical minerals.
“Moreover, it lays the foundation for Resouro to emerge as a prominent supplier in Brazil and a global force in the rare earths supply chain,” Martins says.
Currently, Brazil has an over-reliance on imported rare earth magnets, predominantly sourced from China which controls more than 95% of the global market.
Brazil has 17% of the world’s rare earth reserves and ranks third globally with China accounting for 40% and Vietnam holding 18%.
Despite this, the nation lacks domestic production and manufacturing, hence why the MagBras Initiative aims to close this gap by creating an expanding industrial sector that covers the entire value chain.
Brazil’s current demand for permanent magnets is estimated at 6,000 to 10,000 tonnes annually, driven by industries such as automotive manufacturing, wind energy, and home appliances.
Demand is projected to increase substantially over the next decade.
The MagBras Project will develop a demonstrator facility capable of producing 100 tonnes of permanent magnets per year. The project has a proposed budget of $16.5 million and a three-year timeline.
Resouro Strategic Metals is a Canadian explorer and developer focused on discovering and advancing economic mineral projects in Brazil.
The company’s flagship Tiros Project, located in Minas Gerais, contains resources of 198 million tonnes of titanium dioxide and 6.6 million tonnes of total rare earths oxide within 1.7 billion tonnes of material.
Write to Aaliyah Rogan at Mining.com.au
Images: Resouro Strategic Metals
