Viridis Targets EU Rare Earth Supply by 2028
Viridis Mining aims to break China's dominance by supplying the EU with rare earths from Brazil and France by late 2028, despite ongoing geopolitical tensions over export controls.
Viridis Mining and Minerals, an Australia-listed firm with assets in Brazil, Australia, and Canada, has declared that ending China's grip on rare earth supplies is paramount for its strategic roadmap. Rafael Moreno, the company's managing director, stated that securing stable supply chains for automotive and wind turbine manufacturers is a critical priority for the business. The company is positioning itself as a key alternative supplier for the European Union, aiming to diversify sources away from the current dominant player.
This initiative occurs against a backdrop of heightened market nervousness, as noted by Moreno, amid preparations for a second annual summit between US President Donald Trump and Chinese President Xi Jinping. The meeting is expected to address the status of rare earth export restrictions that Beijing implemented in April 2025. These controls have significantly impacted auto industries in the EU, UK, US, and Japan. While a previous agreement suspended stricter restrictions for 12 months, the extension of this pause remains uncertain, with some analysts suggesting a new deal could be delayed until November during the APEC forum.
Brazilian operations drive diversification strategy
Viridis is executing a concrete operational plan to reduce reliance on Chinese inputs by opening a demonstration plant in Minas Gerais, Brazil. The facility focuses on scraping the mine surface to produce a crumbly mineral powder, which serves as the initial stage of rare earth separation. This raw material will subsequently undergo further processing, potentially in France, to isolate specific rare earth elements. This geographic split in the production chain is designed to create a resilient, non-Chinese supply route for critical minerals.
The company has already gained attention in Brussels, where diversifying supply chains is a top priority for European Commission President Ursula von der Leyen. Jozef Síkela, the EU's international partnership commissioner, visited the Colossus demonstration plant in Brazil to evaluate Viridis's capacity. The firm is targeting a 5% share of the global rare earths market, with full production scheduled to begin at the end of 2028. This timeline aligns with the EU's long-term strategic goals for securing critical raw materials independent of geopolitical leverage.
Strategic partnership with Solvay expands reach
To complete its value chain, Viridis is collaborating with the French chemical company Solvay for the processing of rare earths. Moreno indicated that this strategic partnership aims to supply original equipment manufacturers, including car manufacturers and wind turbine producers like Siemens Gamesa. By integrating with Solvay's chemical processing capabilities, Viridis seeks to offer a complete, Europe-centric solution for industrial clients who require guaranteed access to rare earths without navigating Chinese export controls.
The push for domestic supply chains is also a response to cost pressures and trade imbalances. The EU currently faces a trade deficit with China running at approximately €1bn a day, driven by imports of electric vehicles, renewable energy machinery, and components. Eurometal, a trade group representing steel buyers, argues that Chinese goods are often 30% cheaper than domestic alternatives, putting daily pressure on OEMs to import. Viridis argues that supporting this new supply chain is necessary to prevent it from failing to gain traction due to short-term cost preferences.
Geopolitical risks remain central to outlook
Despite operational progress, the broader geopolitical landscape continues to pose risks to the rare earths market. EU Trade Commissioner Maroš Šefčovič is set to meet with Chinese Commerce Minister Wang Wentao on October 8 to prevent a potential trade war. The EU's concern over the
