A mining company, Viridis Mining and Minerals, aims to supply the EU with rare earths within two years, signaling a move to end China’s dominant control over these materials.

There is ongoing global pressure to shift supply chains away from China due to its dominant processing share and pricing advantages, while political dynamics involve potential delays in longer-term suspension deals tied to regional summits and forums.

Viridis MD Rafael Moreno argues it is paramount to end China’s stranglehold and to secure a deal with China to ease export restrictions, as tensions around rare earth exports persist.

China initially imposed export controls in April of last year, affecting auto industries and other sectors across the EU, UK, US, and Japan; a suspension was extended for 12 months after a 2025 summit but remains uncertain for the future.

EU officials, including top leaders, are prioritizing diversification of supply chains away from China and seeking alternative suppliers capable of reducing the EU’s critical raw materials deficit.

Viridis has demonstrated a plant in Minas Gerais, Brazil, to produce a crude rare earth powder; further processing may occur in France to isolate the rare earths.

Viridis plans to capture about 5% of the world’s rare earths market, with production expected to start by the end of 2028, aided by a strategic partnership with Solvay to process materials and supply OEMs and wind turbine manufacturers in Europe.