The Department of War announced a $750 million investment in Brazil’s Serra Verde rare-earth deposit on Aug. 28, part of a broader $1.55 billion initiative to reduce U.S. dependence on Chinese-controlled supply chains for minerals critical to national defense.
Serra Verde is described as one of the world’s largest rare-earth deposits outside of China, which currently dominates global production and processing of the 17 elements essential to advanced electronics, missile guidance systems, and aircraft components, according to the department.
The investment is framed explicitly as a national security measure. China controls roughly 60 percent of global rare-earth mining and nearly 90 percent of processing capacity, a concentration that U.S. defense officials have identified as one of the most significant vulnerabilities in American military manufacturing.
The $1.55 billion total initiative involves additional federal or private partners beyond the $750 million Department of War commitment, though specific co-investors were not identified in the announcement.
Rare-earth elements are used in everything from F-35 fighter jet components to submarine sonar systems to satellite communications equipment. A disruption in supply could delay weapons production and maintenance across multiple military programs.
The Serra Verde investment is part of a broader administration strategy to build resilient supply chains for critical minerals, which has included investments in domestic processing facilities and partnerships with allied nations including Australia and Canada.
Brazil’s emergence as a major rare-earth partner reflects the administration’s diplomatic efforts to secure supply agreements with Western Hemisphere allies, reducing the logistical vulnerability of relying on distant sources.
The defense industrial base has faced increasing pressure to secure non-Chinese mineral sources as tensions between Washington and Beijing have escalated across trade, technology, and military domains.