The US International Development Finance Corporation (DFC) announced $565 million in financing for rare earth extraction in Brazil this week, targeting the country's second-largest global reserves amid China's 90% control of rare earth processing. The deal advances US supply-chain strategy, according to a February 7, 2026, X post by analyst Jack Prandelli citing the DFC announcement. Brazil holds substantial rare earth reserves but produces and processes minimal amounts due to lacking capital and technology, the post states. Washington views this investment as a means to develop alternatives to China's processing dominance, which Prandelli describes as a strategic choke point and weaponized advantage. The financing aims to position Brazil as a second global hub for critical minerals through targeted investment, per Prandelli's analysis. No specific project locations, timelines, or DFC official statements were detailed in the source during the reporting window from 1:45:49 AM to 3:45:36 AM UTC on February 7, 2026.
