Axel REE Brazil Rare Earth Deal Advances Magnet Supply Chain in Southern Hemisphere

Axel REE

Axel REE signs landmark rare earth deal with Minas Gerais

Axel REE has signed a collaboration deal with the Brazilian state of Minas Gerais to support rare earth magnet development. The deal centers on LabFab ITR, the only rare earth magnet laboratory in the Southern Hemisphere. Axel will supply the lab with materials and gain access to research programs and magnet manufacturing pilot tests.

As a result, the partnership marks a significant step toward regional self-sufficiency in rare earth technologies.

In addition, Minas Gerais will assist Axel REE with permitting, development support, and engagement with government agencies. The state has committed to backing all exploration and operational stages across Axel’s local project portfolio.

Gallium and lithium also part of exploration focus

Axel REE holds two projects in Minas Gerais — Caladão and Caldas — with Caladão nearing final exploration. Caladão contains one of the world’s highest-grade gallium reserves, while Caldas remains in early discovery stages. These assets position Axel to benefit from both energy transition and semiconductor material demand. 

The agreements signed are non-binding but align with Brazil’s strategy to elevate its role in global critical minerals. Meanwhile, Axel’s positioning in gallium and lithium adds strategic depth beyond rare earths.

The Metalnomist Commentary

This rare earth magnet deal marks a shift in global REE value chains. Axel REE’s entry into Brazil could reduce reliance on China and diversify supply for magnet and gallium materials. If successful, LabFab ITR may emerge as a critical hub for rare earth innovation in the southern hemisphere.