BRE and Carester Team Up to Secure Critical Rare Earth Supply

Brazilian Rare Earths Limited (ASX: BRE / OTCQX: BRELY) has entered a landmark partnership with Carester SAS, a leading specialist in rare earth processing. This collaboration is designed to drive forward a major rare earth supply chain project that spans Brazil and France, addressing critical shortages in the heavy rare earth market with strategic and technical precision.

At the heart of this partnership is a binding 10-year supply agreement where Carester commits to purchasing heavy rare earth feedstocks from BRE. These feedstocks, destined for Carester’s Caremag separation plant in Lacq, France, are expected to yield up to 150 tonnes per annum of separated dysprosium and terbium oxides. Dysprosium and terbium are vital for the production of high-performance permanent magnets, components essential for electric vehicles, renewable energy technologies, and numerous advanced industrial applications. Caremag itself is a major new facility backed by Japanese government entities including JOGMEC and corporate partner Iwatani, as well as by the French government, targeting operations in late 2026. When running at full capacity, Caremag will produce approximately 600 tonnes per annum of these heavy rare earth oxides, representing about 15% of the current global supply and significantly boosting the western world’s autonomy in this critical sector. 

Carester brings significant technical expertise to the table, having been instrumental in designing, commissioning, and optimizing rare earth separation plants worldwide. This deep knowledge is critical to the success of BRE’s planned integrated rare earth separation refinery at the Camaçari Petrochemical Complex in Bahia, Brazil. BRE’s Monte Alto Rare Earth Project is among the richest deposits globally, notable for its rare earth elements including neodymium, praseodymium, dysprosium, terbium, niobium, scandium, tantalum, and uranium. This partnership is more than a supply deal; Carester will provide engineering and technical services to help BRE build and commission their refinery, ensuring the highest standards of process efficiency and environmental performance. 

The strategic implications of this partnership extend well beyond the immediate production capacity. The collaboration aims to establish Brazil as a key player in the rare earth supply chain, combining Brazil’s rich mineral resources with the advanced processing capabilities of a European-Japanese backed facility. This integration helps diversify global supply sources, reducing dependency on limited regions currently dominating rare earth production, and addresses the shortfalls specifically in heavy rare earth elements critical for emerging technologies. 

Carester President Frédéric Carencotte highlights the significance: the Brazilian province where BRE operates is unparalleled for its concentration of rare earths, and when paired with the state-of-the-art Caremag facility in France, it forms a secure and resilient supply chain for heavy rare earth oxides. Brazilian Rare Earths Managing Director Bernardo da Veiga emphasizes the partnership as validation of BRE’s strategy to accelerate development of high-grade assets, especially focusing on the supply gap for dysprosium and terbium essential to permanent magnets.

Beyond supply, the partnership’s engineering and technical services agreement extends through 2031, supporting BRE from the construction phase through to steady-state operations and potential future expansions. This long-term collaboration aligns technical development with market demand, providing a foundation for ongoing innovation and capacity growth. 

In a world increasingly reliant on clean technologies and advanced manufacturing requiring rare earth elements, this BRE-Carester alliance is a vital step in securing supply chains and advancing sustainable rare earth production. Their integrated approach, leveraging Brazil’s rich mineral deposits and Carester’s engineering prowess, positions them as key contributors to meeting critical mineral demands necessary for the energy transition and technological progress in the coming decades.