Highlights

Axel and its Brazilian Subsidiary executed a Protocol of Intent with the Minas Gerais State Secretariat of Economic Development and Invest Minas.

One central workstream is in situ recovery field-validation testing for rare earth elements, scheduled to commence in 2027.

The planned work could support rare earth products such as mixed rare earth carbonate or concentrate, alongside gallium products.

Invest Minas intends to assist with attracting and expanding regional suppliers for future field activities and to support engagement through the licensing and implementation process.

Critical minerals explorer Axel REE Limited (ASX:AXL) is advancing rare earth and gallium research at its wholly owned Caladão project in Brazil. The company has moved from a broad state-level understanding to a project-specific Investment framework with the government of Minas Gerais. The agreement centres on field validation, processing work and support for implementation rather than a decision to begin commercial production.

A Project-Specific Protocol Takes Shape

Axel and its Brazilian subsidiary executed a Protocol of Intent with the Minas Gerais State Secretariat of Economic Development and Invest Minas. The document recognises Caladão’s strategic importance and sets out state support through licensing, implementation and operational phases. It builds on a March 2025 memorandum of understanding, shifting the relationship toward a defined program specific to Caladão rather than general cooperation across the state.

Rare Earth Recovery Moves Toward the Field

One central workstream is in situ recovery field-validation testing for rare earth elements, scheduled to commence in 2027. This work is intended to test the process outside the laboratory and provide information for later development assessments. The protocol also identifies continued work on economically viable gallium extraction and processing methods. Both workstreams are Research and Development activities with technical outcomes still to be determined.

Possible Products Depend on Testing

The planned work could support rare earth products such as mixed rare earth carbonate or concentrate, alongside gallium products. Their final commercial form will depend on results from research and pilot activities. State involvement does not establish product specifications, mineral recovery rates or plant economics. The project remains at a stage where field results and processing validation are required before any commercial-scale feasibility conclusion can be reached.

Suppliers, Licensing and Feasibility

Invest Minas intends to assist with attracting and expanding regional suppliers for future field activities and to support engagement through the licensing and implementation process. The protocol gives Axel a formal state-agency interface ahead of its planned 2027 work. Technical performance, regulatory clearances and economic viability remain decisive considerations. The announcement confirms a cooperation framework, not a construction approval or evidence that commercial rare earth or gallium production has begun.