BREAKING: Brazilian Rare Earths Limited (BRE) has just signed a landmark 10-year partnership with Carester SAS, a leading global specialist in rare earth processing, to secure heavy rare earth feedstocks. This strategic agreement aims to bolster BRE’s production capabilities at the Camaçari Petrochemical Complex in Bahia, Brazil, and reshape the rare earth landscape.
The urgency of this deal is underscored by the critical global shortage of essential rare earth elements, particularly dysprosium and terbium, which are vital for high-performance permanent magnets. Under this binding agreement, Carester will purchase up to 150 tonnes per annum of separated DyTb oxides, supporting operations at its upcoming Caremag facility in Lacq, France, set to launch in late 2026.
This partnership is pivotal as it positions Brazil as a key player in the rare earth market, which is increasingly vital for advanced technologies like electric vehicles and renewable energy systems. The Monte Alto Rare Earths Project in Brazil, known for its high-grade deposits, will serve as a crucial feedstock source for this venture.
Bernardo da Veiga, Managing Director and CEO of BRE, stated, “This strategic partnership with Carester validates our strategy to accelerate the development of our high-grade Brazilian rare earth assets. Partnering with recognized global leaders like Carester allows us to transform our ultra-high-grade resources into essential products for our customers.”
The Caremag facility, backed by substantial funding from the French Government and Japanese partners, is anticipated to produce approximately 600 tonnes per annum of DyTb oxides. This facility is poised to become one of the largest heavy rare earth separators in the western world, potentially capturing 15% of the current global production capacity.
Carester’s President, Frédéric Carencotte, emphasized the significance of the Rocha da Rocha Rare Earth Province, stating, “We intend to add a secure rare earth supply chain to produce heavy rare earth DyTb oxides for high-performance permanent magnets.”
In addition to the offtake agreement, BRE and Carester have also executed an Engineering and Technical Services Agreement aimed at expediting the development of BRE’s planned integrated rare earth refinery. This agreement will provide specialized engineering and construction services through December 2031, ensuring alignment between technical execution and market demand.
As this partnership unfolds, industry experts are watching closely, as it could fundamentally change the dynamics of the rare earth market. The collaboration not only addresses the pressing demand for heavy rare earths but also positions both companies at the forefront of a critical minerals revolution.
Stay tuned for updates as this story develops, and share this news to highlight the important strides being made in the rare earth sector!
