Australian producer Lynas Rare Earths has reached an agreement to acquire exploration firm Meteoric Resources for approximately R$ 3.5 billion (around US$ 650 million), taking full control of the Caldeira critical minerals project in southern Minas Gerais. The transaction was disclosed to Brazilian federal authorities prior to the announcement, with talks intermediated by the Casa Civil presidential chief of staff office, according to Folha de S.Paulo.

The deal will be settled entirely in shares, leaving Meteoric shareholders with a 5.9% equity stake in the combined entity once the transaction is put to a vote in January 2027. On top of the acquisition value, Caldeira's feasibility study projects capital expenditures of US$ 498 million (R$ 2.6 billion) to build mine facilities across the municipalities of Andradas, Caldas, and Poços de Caldas.

Operational modeling projects a 23-year mine life producing an average of 12,500 metric tons of rare earth oxides per year. Lynas, which runs refining assets in Australia and Malaysia as the largest supplier of separated rare earths outside China, said it will evaluate the commercial viability of downstream separation facilities in Brazil, though no binding commitment to build processing plants has been signed yet.

The acquisition follows the recent enactment of Brazil's National Critical and Strategic Minerals Policy, federal legislation designed to foster domestic refining and expand oversight on corporate ownership changes in strategic mining assets. In Minas Gerais, the expansion of exploration permits has also drawn scrutiny from local groups and environmental regulators over potential impacts on regional watersheds.

For primary producers, the transaction brings foreign industrial capital to one of South America's most promising ionic clay deposits while testing Brazil's regulatory leverage to demand local refining. For end consumers, integrating Caldeira into Lynas's processing network adds supply options for automotive and wind turbine manufacturers seeking alternatives to Chinese supply chains.