Resource Nationalism's New Theater
The ostensible 'three-way race' for Brazil’s rare earth elements involves major players from China, Western nations (primarily the US and Europe), and Brazil itself. The Financial Times piece, while detailing surface-level competition, omits critical context regarding the historical architecture of resource extraction and the geopolitical incentives driving current actions. THE ACTORS: The primary
actors are nation-states and their associated corporate entities. China, through state-backed enterprises, has historically controlled over 80% of global rare earth production and processing (USGS, 2023). Western actors, primarily the United States and European Union, are now actively seeking to diversify their supply chains, driven by national security and industrial policy concerns. Brazil, as
the resource-rich nation, is attempting to assert greater control over its domestic natural assets, albeit from a position of relative economic vulnerability. The names of specific corporations or local political figures directly benefiting are often obscured in generalized reporting. THE FUNDING: Specific funding amounts are rarely disclosed publicly for such strategic initiatives, but US
government initiatives like the Defense Production Act (DPA) enable significant subsidies and guaranteed purchases for critical mineral projects. For example, in 2022, the US Department of Defense announced DPA Title III investments exceeding $100 million in rare earth processing projects. Chinese investments typically flow through state-owned enterprises or development banks, often tied to