Brazilian mining company Serra Verde Group is planning to increase its production of rare-earth metals amid growing trade tensions between the US and China, reported Bloomberg.

The company commercial concentrate production of mixed rare-earth concentrate from phase one of its Pela Ema deposit in Minaçu, in the Brazilian state of Goiás in January last year.

Pela Ema is characterised as a large, long-life ionic clay deposit rich in high-value heavy and light rare earth elements, including neodymium, praseodymium, terbium and dysprosium, which are said to be crucial for the energy transition.

Serra Verde Group chief operating officer Ricardo Grossi was cited by the news agency as saying that the company is targeting an annual delivery of 5,000 tons (t) of rare-earth oxide by 2026.

Grossi said that the planned increase in output is set to occur alongside an expansion in capacity.

Serra Verde is also considering strategic partnerships with potential companies to further its rare-earth metals production and processing capacity.

Grossi believes the company has the potential to become a key supplier of such critical minerals to Western countries, particularly if China tightens export controls on more metals.

Backed by Denham Capital, Serra Verde has also received support from the Energy and Minerals Group in the US and the UK's Vision Blue Resources.

Grossi said: “The investment can be made by a new partner or by our current investors.”

The company is currently in talks for another round of funding.

Plans for expanding operations in Brazil are also being assessed, which could potentially double production by 2030.