Ionic Rare Earths, through its Viridion joint venture, has delivered the first recycled rare earth oxides to Brazil’s CIT SENAI ITR, marking a key step toward a domestic magnet supply chain in South America.
- First delivery of recycled rare earth oxides (REOs) to Brazilian magnet manufacturer
- Recycling technology processes Brazilian end-of-life magnets in UK facility
- Supports Brazil’s growing wind energy and electric vehicle markets
- Brazilian government backing and funding for strategic minerals development
- Viridion JV positioned to disrupt China-dominated rare earth supply chains
A Milestone for Brazil’s Rare Earth Industry
Ionic Rare Earths Limited (ASX: IXR) has achieved a significant breakthrough in rare earth supply chain development with the delivery of the first recycled magnet rare earth oxides (REOs) to CIT SENAI ITR in Brazil. This delivery, facilitated through the Viridion joint venture with Viridis Mining and Minerals Ltd, represents the first time high-purity recycled REOs sourced from Brazilian end-of-life magnets have been supplied locally to support magnet manufacturing.
The recycled materials include critical elements such as neodymium, praseodymium, dysprosium, and terbium, key components in permanent magnets used in electric vehicles, wind turbines, and other advanced technologies. These REOs were recovered from Brazilian decommissioned magnets, processed using Ionic Technologies’ patented hydrometallurgical recycling technology at their Belfast, UK facility, and shipped back to Brazil for further alloy and magnet production at CIT SENAI’s Lab Fab facility in Minas Gerais.
Strategic Importance Amid Global Supply Challenges
This development comes at a time when China’s tightening export controls on rare earths have intensified global supply chain vulnerabilities. Brazil, as the world’s seventh largest and rapidly growing wind energy market, alongside its emerging electric vehicle manufacturing sector, stands to benefit from establishing a sovereign and sustainable rare earth supply chain. The Viridion JV’s approach leverages recycling to reduce reliance on mining and imports, aligning with Brazil’s strategic push for critical mineral sovereignty and low-carbon industrial growth.
Government support is robust, with the Minas Gerais state investment agency Invest Minas backing the replication of UK recycling technology locally. Additionally, the MagBras Project, supported by a R$73.3 million fund under Brazil’s MOVER program, aims to foster innovation and sustainability in rare earth processing. The Brazilian Development Bank and other institutions have also committed substantial financing to boost strategic mineral projects, positioning Viridion to capitalize on these opportunities.
Building a Circular Economy for Rare Earths
The initiative exemplifies a circular economy model, where end-of-life magnets from medical equipment and wind turbines are recycled into high-value REOs, which are then used to manufacture new magnets domestically. CIT SENAI ITR plans to ramp up neodymium-iron-boron magnet production to 100 tonnes annually by the end of 2026, supported by these recycled inputs. This closed-loop approach promises lower carbon emissions and reduced environmental impact compared to traditional mining and refining.
Ionic Rare Earths’ Managing Director Tim Harrison highlighted Brazil’s strategic role in their global expansion, emphasizing the potential to disrupt monopolized global rare earth markets. Executive Chairman Brett Lynch noted that the company’s technology offers a fast, low-capital pathway to secure rare earth supply chains outside China, with scalability across multiple regions.
Looking Ahead
While the initial delivery and lab-scale testing mark important progress, the commercial viability and scalability of the recycling technology in Brazil remain to be proven. Ongoing discussions with local authorities aim to establish pilot plants for refining and recycling near Viridis’ Colossus Project operations. The success of these efforts could position Brazil as a key player in the global rare earth market, supporting the energy transition and advanced manufacturing sectors across South America and beyond.
Bottom Line?
Ionic Rare Earths’ recycled rare earth delivery to Brazil signals a new chapter in sustainable, sovereign magnet supply chains amid shifting global dynamics.
Questions in the middle?
- How quickly can Viridion scale pilot plants to commercial production in Brazil?
- What level of government funding and incentives will be secured to support expansion?
- Can the recycled REOs meet the stringent quality and performance standards for high-end magnet applications?