Ionic Rare Earths’ Brazilian joint venture Viridion has secured land and government backing to build South America’s inaugural rare earth refining and recycling centre, aiming to start operations by late 2026.
- Viridion granted 2,071 sqm land in Poços de Caldas for rare earth refining hub
- Facility to process mixed rare earth carbonate and recycled magnets
- Strong local and federal government support including expected funding
- Operations targeted to commence in second half of 2026
- Project aligns with Brazil’s industrial policy and clean energy goals
A Landmark for South American Rare Earths
Ionic Rare Earths Limited (ASX – IXR) has taken a significant step forward in establishing South America’s first rare earth refining and recycling hub through its 50/50 Brazilian joint venture, Viridion Rare Earth Technologies Ltda. The Municipality of Poços de Caldas, Minas Gerais, has officially granted Viridion a 2,071 square metre parcel of land within an industrial zone to construct the Centre for Rare Earths Innovation, Technology and Recycling (CRITR).
This milestone not only marks a strategic expansion for IonicRE but also signals Brazil’s growing commitment to developing a sovereign and sustainable rare earth supply chain, crucial for advanced manufacturing and renewable energy sectors.
Innovative Technology Meets Circular Economy
The CRITR facility will be the first of its kind in South America, designed to process both primary feedstock, Mixed Rare Earth Carbonate (MREC) from the Viridis Colossus Project, and recycled NdFeB magnets sourced from Brazil’s industrial and electronic waste streams. Utilizing Ionic Technologies’ proprietary separation and recycling processes, the plant aims to produce high-purity rare earth oxides (REOs) such as neodymium, praseodymium, dysprosium, and terbium with purity levels exceeding 99.5%.
Importantly, the project embraces a circular economy model, recovering critical elements from end-of-life magnets and waste, thereby reducing dependency on imported raw materials and minimizing environmental impact through closed-loop water and reagent systems.
Government Support and Funding Prospects
Viridion’s land grant comes with unanimous approval from the Poços de Caldas City Council and strong endorsement from local and state governments. The project aligns with Brazil’s “New Industry Brazil” policy, which promotes technological sovereignty and downstream value creation in strategic minerals.
Moreover, Viridion has been 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 funding from a R$5 billion (~US$900 million) program aimed at advancing rare earth refining and recycling facilities. The final structure of this funding package is expected to be confirmed in the coming weeks, which will accelerate the CRITR’s development.
Strategic Implications and Future Outlook
Operations at CRITR are targeted to commence in the second half of 2026, subject to financing and regulatory approvals. The facility is expected to create 48 direct jobs and contribute to local economic development in Minas Gerais. This initiative complements IonicRE’s global strategy, which includes magnet recycling plants in the UK and plans for expansion into the USA.
With rising global demand for rare earth elements driven by electric vehicles, renewable energy, and advanced manufacturing, the Viridion JV positions Brazil as a key player in the rare earths supply chain. The project’s emphasis on sustainability and circular economy principles also addresses environmental and social governance concerns increasingly important to investors and governments alike.
Bottom Line?
Viridion’s CRITR project could redefine South America’s rare earth landscape, but its success hinges on securing final funding and navigating regulatory hurdles.
Questions in the middle?
- What are the specific timelines and conditions for finalizing the federal funding package?
- How will Viridion scale operations beyond the pilot phase to meet growing rare earth demand?
- What regulatory challenges could impact the construction and operation of the CRITR facility?