How BRE’s $120M Boost and Carester Deal Could Reshape Rare Earths Supply

Strategic Partnership with Carester

Brazilian Rare Earths Limited (BRE) has taken a significant step forward in its rare earths ambitions by signing a binding 10-year offtake and partnership agreement with Carester SAS, a renowned specialist in rare earth processing. This deal secures a long-term buyer for BRE’s heavy rare earth feedstocks, specifically dysprosium and terbium oxides, which are critical for high-performance permanent magnets used in advanced technologies.

Carester, through its Caremag subsidiary, is developing one of the world’s largest heavy rare earth separation and recycling plants in Lacq, France, with operations expected to commence in late 2026. The partnership not only guarantees offtake but also brings Carester’s engineering expertise to support BRE’s planned integrated rare earth separation plant at the Camaçari Petrochemical Complex in Bahia, Brazil. This collaboration positions BRE to become a key player in the western heavy rare earth supply chain, addressing global shortages in these critical elements.

Amargosa Bauxite-Gallium Project, A Major Resource Milestone

BRE announced a maiden JORC-compliant mineral resource estimate for its Amargosa Bauxite-Gallium Project, revealing a substantial 568 million tonnes of bauxite with high-quality direct-ship potential. The resource is notable for its low reactive silica content, aligning with international benchmarks and offering advantages in alumina refining efficiency and environmental impact.

The project also boasts significant gallium endowment, a metal increasingly vital for semiconductors and defence applications. With nearly 90% of the direct-ship resource classified as Indicated, the Amargosa project is well-positioned for near-term development. BRE is actively exploring strategic options to unlock value from Amargosa, including joint ventures or potential spin-outs, allowing a sharper focus on its flagship rare earth assets.

Sulista, Emerging High-Grade Rare Earth District

Exploration results from the Sulista Rare Earth District have confirmed a new high-grade rare earth system extending over 7 kilometres of mineralised strike. The district features shallow, high-grade mineralisation with grades reaching up to 32.1% total rare earth oxides in boulder samples, indicating strong potential for resource expansion.

Strategically located near key infrastructure, including highways, power, and skilled labor, Sulista complements BRE’s broader portfolio and supports the company’s vision of establishing Brazil as a rare earth production hub.

Operational Progress and Financial Strengthening

BRE secured the final operating permit from Brazil’s National Authority on Nuclear Safety for its rare earth pilot plant at the Camaçari Petrochemical Complex. This facility will be critical for optimizing beneficiation and hydrometallurgical processes ahead of commercial-scale operations, with commissioning targeted for mid-2026.

Financially, BRE bolstered its balance sheet by completing a A$120 million placement in October 2025, raising funds to accelerate development timelines across its rare earth projects and the planned integrated separation refinery. At quarter-end, the company held A$57 million in cash, providing a solid runway for ongoing exploration and project advancement.

Looking Ahead

BRE is actively advancing multiple workstreams, including scoping studies, metallurgical test work, and high-resolution geophysical surveys, to further define and optimize its resource base. The company’s integrated approach; from exploration through to processing; positions it well to capitalize on growing demand for critical minerals essential to clean energy and advanced technologies.