US Rare Earth Supply Chain Faces New Hope—and Challenges—with IonicRE Expansion

Strategic Expansion of Viridion Joint Venture

Ionic Rare Earths Limited (ASX – IXR) has announced a significant expansion of its Viridion Joint Venture, now targeting the development of a rare earth refinery in the United States. This move complements the existing plans for a Brazilian refinery and magnet recycling facility, positioning Viridion to become a key player in establishing a resilient, sovereign supply chain for magnet and heavy rare earth oxides (REOs) outside of China’s dominant influence.

The Viridion JV, a 50/50 partnership between Ionic Rare Earths and Viridis Mining and Minerals Ltd, has already made strides in Brazil, delivering the country’s first recycled magnet REOs and securing financial backing from Brazilian government agencies BNDES and FINEP. This support is pivotal in accelerating refining and recycling activities, with the JV now poised to extend its footprint into the US market.

Leveraging Proprietary Technology and Government Support

Central to this expansion is Ionic Technologies’ proprietary separation and refining intellectual property, which underpins the JV’s refining processes. IonicRE completed an internal scoping study in 2023 for a US-based heavy rare earth oxide refinery, designed to process mixed rare earth carbonate (MREC) sourced from its Ugandan Makuutu project and other deposits. The study envisaged a facility in Tennessee capable of producing 4,000 tonnes per annum of separated REOs, including magnet and heavy rare earth elements critical for advanced manufacturing.

Viridion plans to update this scoping study to reflect the expanded scope and potential feedstock from the Colossus Project in Brazil, aiming to fast-track development and stakeholder engagement in the US. The JV’s strategy aligns with growing US government efforts to reduce reliance on Chinese rare earth imports, which currently account for about 70% of US demand.

Addressing Global Supply Chain Vulnerabilities

The timing of this expansion is notable given recent disruptions caused by China’s export restrictions on rare earths in April 2025, which have impacted automakers and manufacturers in the US, Europe, and Japan. By establishing refining and recycling capabilities in both Brazil and the US, Viridion aims to create a multi-asset, geographically diversified supply chain that can deliver high-purity, traceable rare earth products free of radionuclides.

Moreover, the JV’s focus on recycling end-of-life magnets and swarf into high-value separated REOs supports a circular economy approach, enhancing sustainability and supply security. This integrated strategy is critical for supplying materials essential to electric vehicles, offshore wind turbines, communications infrastructure, and defense technologies.

Looking Ahead

With scoping studies underway and pilot plant discussions progressing in Brazil, Ionic Rare Earths and Viridion are well positioned to advance their rare earth refining ambitions. The expansion into the US market not only broadens their operational footprint but also responds to a pressing geopolitical and industrial need for secure, ex-China rare earth supply chains.

Managing Director Tim Harrison highlighted the JV’s rapid progress and the strategic importance of building sovereign supply chains across multiple continents, underscoring IonicRE’s international expansion strategy spanning the UK, Europe, Asia, and the Americas.