Early geological signals in the Amazon coincide with a non-binding agreement reshaping investment, permits, and security rules.

Early signs beneath the Amazon

Geologists have identified preliminary indications of rare earth elements in Ecuador, placing the country—cautiously—on the radar of a global race for minerals critical to modern technology. A study released in September 2025 by the Institute of Geological and Energy Research suggests a statistical probability of light rare earth elements, including neodymium and yttrium, in the northern Amazon, particularly near the Cofán River in Sucumbíos province.

The research, led by Iván Villarreal and Edwin Gallardo, does not point to world-class deposits or existing industrial production. Instead, it highlights traces that warrant further investigation. In addition to rare earths, the study detected signs of elements such as beryllium and zirconium, which are used in specialized industries, including nuclear applications.

Villarreal said similar geological possibilities may exist farther south, along the border between the cantons of Oña and Yacuambi, spanning Azuay and Loja provinces. That region is already known for tin and tungsten studies and for granitoid formations associated with anomalies of cerium, zinc, and copper.

Why the minerals are there

According to geologists, the presence of rare earth traces in northern Ecuador stems from a specific combination of ancient geological processes. Millions of years ago, magma rising from deep underground became trapped and cooled slowly, allowing certain elements to separate and concentrate in pegmatites—rock formations that can act as natural mineral repositories.

The area is also crossed by major geological faults that once functioned as conduits for hot, metal-rich fluids. As those fluids moved through the fractures and interacted with surrounding rocks, rare earth elements were deposited and locked in place. The materials identified so far correspond mainly to light rare earths, widely used in permanent magnets, electric motors, batteries, and other technological components.

Rare earths are not uncommon in nature, Villarreal emphasized. Their challenge lies in concentration: they are usually dispersed in amounts too small to extract economically, and only specific geological settings allow them to accumulate at workable levels.

From probability to potential

Specialists agree Ecuador remains at an early, exploratory stage. Moving from statistical probability to proven, exploitable resources would require advanced geochemical testing, detailed geological mapping, and sophisticated geophysical surveys. Many of these analyses would need to be conducted abroad and demand significant investment and highly specialized expertise.

Beyond technical hurdles, Villarreal said regulatory clarity is essential. The main area identified so far lies in an environmentally sensitive zone with social and security complexities, making progress unlikely without a defined state strategy, clear public policies, and predictable rules for investors. Other countries in the region, such as Chile, already operate formal programs dedicated to rare earth development.

Minerals with global weight

International interest in rare earth elements has surged as demand grows for clean energy technologies, advanced electronics, and defense applications. Wind turbines, electric vehicle motors, and high-performance batteries all rely on these materials, elevating them to a strategic category in global supply chains.

Unlike copper, which is considered strategic because of its broad industrial use, rare earths are labeled critical minerals. Their production is concentrated in a small number of countries, and disruptions can ripple through entire technological ecosystems. China remains the dominant producer, while countries such as Russia and Brazil are key sources of certain heavy rare earth elements used in nuclear and defense industries.

The United States has been seeking to reduce reliance on limited suppliers and diversify sources, a push that has increasingly shaped its international mineral diplomacy.

Framework agreement with Washington

That context set the stage for a new framework agreement signed on February 4th between Ecuador and the United States, alongside similar accords Washington reached with Argentina, the Cook Islands, Guinea, Morocco, Paraguay, Peru, the Philippines, the United Arab Emirates, and Uzbekistan. The document focuses on cooperation in the mining and processing of critical minerals and rare earths.

The agreement establishes a six-month window to identify projects eligible for financing and to promote final products for buyers in both countries, with the stated aim of strengthening supply chains for advanced technologies and defense. It also outlines mechanisms to mobilize public and private capital through loans, guarantees, equity investments, purchase agreements, insurance, and regulatory facilitation.

Although non-binding, the framework signals political alignment and sets out a roadmap for cooperation rather than enforceable legal obligations.

Permits, priorities, and security

One of the agreement’s central themes is streamlining environmental permits and licenses. The text calls for accelerating and simplifying approval processes within national legal systems. In Ecuador, this aligns with a legal reform sent by President Daniel Noboa to the National Assembly, proposing to replace the current environmental license with a broader “environmental authorization” framework. The government argues the change would maintain strict oversight for high-impact projects while reducing red tape for lower-risk activities.

The agreement also introduces a political understanding that Ecuador and the United States would have a “first opportunity” to invest in mining assets considered strategic if those assets are put up for sale. In parallel, both governments commit to discouraging transactions that could affect national security.

To that end, the framework calls for tools to review or deter the sale of critical mineral or rare earth projects if governments believe such deals could jeopardize strategic interests. The language targets practices deemed unfair or unethical, including market manipulation, state subsidies, or artificially low prices, and proposes cooperation to stabilize markets and uphold high standards.

China’s growing footprint

The timing of the agreement coincides with an expanding Chinese presence in Ecuador’s mining sector. Jiangxi Copper is close to acquiring SolGold, owner of the Cascabel project, which holds gold and copper reserves expected to rank among the largest in Latin America. Lumina Gold has already sold the Cangrejos project in El Oro province to CMOC Singapore, a subsidiary of China’s CMOC Group, and the Chinese-owned Ecuacorriente operates Mirador, Ecuador’s only large-scale copper mine in production since 2019.

At a press conference on February 11th, U.S. Assistant Secretary of State for Economic, Energy and Business Affairs Caleb Orr said the framework agreement was not intended as retaliation against China. He described it instead as an effort to strengthen resilience, standards, and transparency in global supply chains, adding that Ecuador holds significant reserves of heavy rare earth elements, copper, and gold in the Andean region.

As Ecuador weighs early geological promise against environmental sensitivity and geopolitical interest, rare earths remain a possibility rather than a proven resource—one now intertwined with global competition, domestic regulation, and long-term development choices.