Can Viridion Overcome Challenges to Deliver Brazil’s First Sustainable Rare Earth Refinery?

Government Backing for Brazil’s Rare Earth Ambitions

Ionic Rare Earths Limited (ASX, IXR) has achieved a pivotal milestone with its Brazilian joint venture, Viridion, being selected by the Brazilian National Bank for Economic and Social Development (BNDES) and the Federal Agency for Funding Authority for Studies and Projects (FINEP) to receive significant funding. This support is aimed at advancing rare earth refining and magnet recycling facilities within Brazil, a country rapidly positioning itself as a key player in the global critical minerals landscape.

The funding, part of a broader R$8 billion (~US$1.44 billion) initiative by BNDES and FINEP to bolster strategic mineral projects, will enable Viridion to develop pilot plants, conduct metallurgical testing, and carry out engineering feasibility studies. These steps are critical to establishing a fully integrated downstream rare earth supply chain in Brazil, reducing reliance on China and addressing recent supply disruptions that have rattled global manufacturing sectors.

From Pilot Plants to Production, A Strategic Leap

Viridion’s recent delivery of high-purity recycled rare earth oxides, including Neodymium, Praseodymium, Dysprosium, and Terbium, to CIT SENAI’s magnet manufacturing facility in Minas Gerais marks a significant operational milestone. This achievement not only demonstrates the viability of local recycling but also sets the stage for scaling up production to meet growing demand from Brazil’s expanding wind energy and electric vehicle sectors.

With the support of the Minas Gerais state government and its joint venture partner Viridis Mining and Minerals, Viridion is advancing plans to build pilot refining and recycling plants near existing mining operations. The initiative promises to lower operating costs and foster a secure, traceable supply chain for rare earth oxides critical to permanent magnet production.

Technology and Sustainability at the Core

Central to Viridion’s competitive advantage is Ionic Technologies’ proprietary separation and recycling technology, developed in the UK and licensed exclusively to the joint venture in Brazil. This technology enables near-complete extraction of rare earth oxides from end-of-life magnets and waste materials with minimal environmental impact, offering a low-capital, low-emission pathway to market.

Such innovation aligns closely with global decarbonisation goals and Brazil’s ambition to become a leader in sustainable critical minerals processing. The project’s timing is particularly fortuitous given the increasing geopolitical tensions surrounding rare earth supply chains and the urgent need for diversified, resilient sources.

Looking Ahead, A New Chapter for South American Rare Earths

As Viridion negotiates the final structure of its funding package, the company is well positioned to accelerate its development timeline and capitalize on Brazil’s growing advanced manufacturing and renewable energy markets. The ramp-up of magnet production at CIT SENAI’s Lab Fab facility, targeting 100 tonnes per annum by 2026, underscores the tangible progress toward a sovereign rare earth ecosystem.

For Ionic Rare Earths, this government endorsement not only validates its strategic vision but also signals a broader shift in the rare earth industry toward circular, sustainable supply chains. The coming months will be critical to watch as Viridion moves from pilot projects to commercial-scale operations, potentially reshaping South America’s role in the global rare earths market.