Brazil just tripled its rare‑earth exports to China: Here's why
What's the story
Brazil has seen a massive surge in its rare earth exports to China, with the first half of 2025 witnessing a threefold increase. This sharp rise comes at a time when China is actively seeking to diversify its supply chains amid worsening diplomatic and trade tensions with the United States. The data has been released by the China-Brazil Business Council (CBBC). It also shows that Brazil's overall exports to China fell by 7.5% year-on-year to $47.7 billion.
Trade dynamics
Brazil's imports from China surged by 22%
Brazil's imports from China climbed 22% to $35.7 billion, driven in part by a surge in hybrid vehicle purchases. Imports of these vehicles jumped 52% by volume and 14% by value, reaching $1.38 billion, with China now supplying 84% of Brazil's hybrid vehicle imports. As a result, Brazil's trade surplus with China narrowed to $12 billion—its lowest level since 2019 and just half of the 2024 figure.
Trade impact
Brazil has emerged as a strategic alternative for China
China has long dominated the global processing of these critical minerals, but a mix of environmental curbs and geopolitical pressure has prompted Beijing to reduce its dependency on any single source. Brazil, with its large reserves and low political friction, has emerged as a strategic alternative. For Brazil, the rare-earth trade offers an opportunity to reposition itself within the global clean tech and defense value chains, even as it balances partnerships with both Western economies and China.