Lynas Rare Earths has agreed to acquire Australia-listed explorer Meteoric Resources in a transaction valued at approximately $672 million, marking the company’s entry into Brazil’s expanding rare-earth industry. The deal, announced in early October, gives Lynas control of Meteoric’s Caldeira project located in Minas Gerais, Brazil, which is reported to be the largest ionic clay rare-earth mineral resource outside China under the JORC reporting code.

Brazil holds significant potential in the global rare-earth market, with estimated reserves of around 11 million metric tons—roughly 15% of the world’s total—according to the U.S. Geological Survey. Rare-earth minerals are essential components in a wide range of technologies, including electric vehicles, consumer electronics, and military equipment such as jet fighters and missile systems. The country’s rare-earth deposits in clay are considered more cost-effective and easier to process than the hard-rock deposits common to Australia and other regions.

Lynas, currently the largest producer of separated rare earths outside China and the sole commercial supplier of heavy rare earth elements such as dysprosium and terbium outside the country, operates hard-rock mining and processing facilities in Australia and Malaysia. Expanding into Brazil aligns with the company’s goal to diversify supply and boost capacity amid a global push to reduce reliance on China, which dominates rare-earth processing.

John Humphrey, Chair of Lynas, emphasized that Brazil’s established mining framework and government support make it an attractive jurisdiction. He highlighted that expanding operations into a new country will help Lynas maintain its leadership in the global rare-earth supply chain and meet rising customer demand.

Brazilian authorities are encouraging mining companies not only to extract rare earths but also to build local processing facilities capable of separating the minerals, producing metals, and eventually manufacturing magnets. Lynas has indicated it will evaluate opportunities for further downstream processing within Brazil to support the nation’s economic development and sustainability objectives.

The acquisition will be executed through an all-share transaction, in which Meteoric shareholders will receive 0.0207 Lynas shares for every Meteoric share held. This offer represents a 68% premium over Meteoric’s previous closing price. Lynas stated that this structure will position the company well to finance the development of the Caldeira project, anticipated to require capital expenditures exceeding $500 million.

Lynas, valued at about $9 billion, has recently expanded its footprint in strategic markets, including entering into a preliminary $96 million supply agreement with the U.S. Department of Defense earlier this year. The acquisition of Meteoric is part of its broader strategy to enhance production capacity and secure more diversified sources of critical minerals.