Rare earth developer Meteoric Resources (MEI.AX) has announced a collaboration with a regional department of Brazil’s Minas Gerais state to explore the production of rare earth magnets.
Meteoric is currently developing its Caldeira rare earths deposit in Minas Gerais and is planning a demonstration plant to produce a mixed rare earth carbonate and small volumes of separated oxides, which will start commissioning next year. The company plans to supply these materials to the magnet factory.
According to Meteoric CEO Nick Holthouse, Brazil at both the state and federal level is very clear about its ambitions to build a rare earths supply chain, aiming to break China’s dominance in this sector. The move is part of Western economies’ push to secure the metals needed for magnets used in green energy and defense applications.
Meteoric has signed a preliminary agreement with Lab Fab, a permanent magnet technology developer backed by Minas Gerais. The agreement includes the supply of raw materials to Lab Fab’s facility, which will begin pilot production of rare earth magnets later this year. The facility will have an initial capacity of 100 tonnes of permanent magnets per year, with plans to double capacity within three years.
In addition to the deal with Lab Fab, Meteoric has a preliminary agreement with Canada’s Neo Performance Materials to supply its Estonia plant for 25-30% of its production, starting in the second half of 2027. The company is also in talks with automakers and original equipment manufacturers (OEMs) for new supply deals.
Meteoric has also been awarded $250 million in preliminary support from the U.S. Export-Import Bank (EXIM).