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Highlights
- Brazilian JV secures rare earth funding support
- First recycled REOs delivered from local Brazilian magnets
- Brazil moves closer to domestic rare earth supply leadership
Ionic Rare Earths (ASX:IXR) has achieved a major milestone in advancing Brazil’s rare earth sector through its joint venture, Viridion, which has received substantial funding from the Brazilian government. This initiative aims to fast-track the development of local rare earth refining and recycling infrastructure—an important step toward creating a sustainable supply chain for critical minerals.
The support stems from Brazil’s National Bank for Economic and Social Development and the Federal Agency for Funding Authority for Studies and Projects, marking a strategic move to bolster the nation’s clean energy transition. Viridion is a 50/50 partnership between Ionic Rare Earths and Viridis Mining and Minerals (ASX:VMM), and it stands at the forefront of rare earth innovation in South America.
The newly awarded funding will be used to establish pilot refining plants, magnet recycling facilities, and metallurgical testing capabilities in the state of Minas Gerais. These initiatives are aligned with Brazil’s broader ambitions to become a leader in the downstream supply of rare earth elements (REEs), especially amid evolving global supply dynamics and tighter export controls from China.
The Brazilian government had initially announced a R$5 billion (approximately US$900 million) fund in January 2025 to support strategic minerals, followed by an additional R$3 billion (around US$540 million) aimed at technology innovation centres. Viridion’s selection for this support indicates confidence in the project's technical capability and alignment with national priorities.
This development follows Viridion’s successful delivery of Brazil’s first domestically recycled REOs—neodymium, praseodymium, dysprosium, and terbium—from end-of-life magnets. These materials were supplied to the CIT SENAI-Lab Fab facility in Lagoa Santa, further validating the project's feasibility and scalability.
With Brazil ranking as the seventh-largest wind energy market globally, the demand for rare earths is expected to rise alongside the country’s expanding renewable energy infrastructure. Viridion’s mission is to locally supply magnet-grade REOs critical for electric vehicles and wind turbine manufacturing, aligning with the green industrial vision.
The establishment of refining and recycling facilities not only strengthens Brazil’s industrial independence but also contributes to the global movement toward cleaner technologies. Viridion’s efforts could transform the region into a vital hub for rare earth materials, supporting both domestic and international clean energy supply chains.
