Brazilian miner Serra Verde Group is boosting production of rare earth metals at a time of growing trade friction between the US and China, the world’s dominant supplier of minerals critical to technology.

The company, which started commercially producing concentrate in Brazil’s Goias state about a year ago, plans to deliver 5,000 tons of rare earth oxide annually in 2026, Chief Operating Officer Ricardo Grossi said in an interview. The higher output will come alongside increased capacity, he said Monday, without disclosing numbers.

Serra Verde is also mulling strategic partnerships with companies and countries to expand in rare earth metals production and processing, said Grossi, whose closely held firm produces neodymium, praseodymium, terbium and dysprosium. He sees a chance for the miner to become an alternative supplier to the West for such critical minerals, especially if China expands export controls against the US to more metals.

China has a dominant role as a producer and processor of the 17 rare earth elements used in magnets needed for electric vehicles, wind turbines and solar panels, as well as in critical military hardware. The Asian nation, which controls 70% of the mined material and 90% of refining capacity, produced 240,000 tons of rare earth oxide equivalent in 2023, according to the US Geological Survey. Such dominance has the US and allies scouring the globe for alternative sources to reduce dependence on China.

Serra Verde is backed by Denham Capital and has drawn support from Energy and Minerals Group in the US and the UK’s Vision Blue Resources Ltd., including a $150 million investment in October. Negotiations for another funding round are ongoing.

“The investment can be made by a new partner or by our current investors,” said Grossi, a mining engineer who has worked for companies such as Vale SA and Anglo American Plc.

The company is also assessing the potential for an expansion of its Brazilian operations, which could double output before 2030. Serra Verde’s efforts have been recognized by the Minerals Security Partnership — a collaboration of 14 countries including the US plus the European Union, which aims to accelerate development of sustainable, secure and diverse supply chains for these critical minerals.

While prices for rare earth metals have been hurt by a glut in supplies, Serra Verde is banking on continued appetite for the elements to produce more magnets. Grossi said Asia is currently the main destination for its output. The company sees demand for its products increasing by 8.5% a year until 2035. And that’s expected to be a boost to the company’s balance sheet.

“We began showing revenue for the first time after 15 years, which is already a win,” Grossi said. “The company’s financial dynamics are set to change completely from 2026 onwards.”