US DFC Offers $565M Financing to Brazilian Rare Earth Project

Luxembourg-based Frontier Rare Earths today announced it successfully obtained a $20 million investment from South Africa's Industrial Development Corporation (IDS) and signed an offtake agreement with France's Carester. The company has now initiated the final feasibility study for its South African magnet-use rare earth and battery-grade manganese project. Frontier Rare Earths is currently advancing the development of the Zandkopsdrift project in South Africa. The project is expected to achieve an annual capacity of approximately 3,038 mt of Pr-Nd oxide, 114 mt of dysprosium oxide, and 25 mt of terbium oxide over the first 25 years.

Serra Verde, a Brazilian rare earth element producer, announced today that the US International Development Finance Corporation (DFC) offered it a financing package worth $565 million, which also includes an option for the US government to acquire a minority stake in the company. Serra Verde’s Pela Ema ionic clay deposit in Brazil is scheduled to begin commercial production in 2024, with an expected annual output of 5,000 mt of total rare earth oxides, including dysprosium, erbium, neodymium, and praseodymium. Serra Verde plans to use the funds to refinance existing loan facilities and expand production capacity. The project aims to increase total rare earth oxide production to 6,500 mt per year by 2027.

This week, the overseas rare earth market revolved around three main themes: technological breakthroughs, capacity expansion, and geopolitical strategy. Enterprises in the US and Canada made substantial progress in rare earth recycling technology, while South Korea adopted a two-way strategy in supply chain cooperation. At the same time, the US launched a large-scale strategic stockpiling plan, highlighting the urgency of global efforts to achieve autonomy in rare earth supply chains. Additionally, resource-rich countries such as Russia and India accelerated their exploration layouts, while Japan and the EU enhanced the resilience of the industry chain through corporate restructuring and international cooperation.