IonicRE’s Brazilian JV wins government funding to accelerate rare earth refining and recycling
Published: 11:27 13 Jun 2025 AEST
Ionic Rare Earths Ltd (ASX:IXR, OTC:IXRRF)’s rare earth oxide (REO) recycling joint venture, Viridion, has secured significant funding from the Brazilian government to fast-track the development of rare earth refining and magnet recycling facilities in Brazil.
The backing from the Brazilian National Bank for Economic and Social Development (BNDES) and the Federal Agency for Funding Authority for Studies and Projects (FINEP) is set to accelerate Viridion’s ambitious plans to establish a sustainable, local supply chain for critical rare earth elements.
The funding, a key development for IonicRE’s expansion in the critical minerals space, will primarily support the establishment of pilot rare earth refining plants, magnet recycling facilities and metallurgical testing — crucial steps as the global push for secure and sustainable rare earth supply chains intensifies, particularly amid lead producer China’s increasing export controls.
Government backing boosts development plans
Viridion, a 50/50 joint venture between IonicRE and Viridis Mining and Minerals Ltd (ASX:VMM), has received support from both the Brazilian federal government and the state of Minas Gerais. The funding allocation follows an initial call launched in January 2025, in which the Brazilian authorities committed R$5 billion (about US$900 million) to companies engaged in transforming strategic minerals.
In addition, a second funding tranche of R$3 billion (around US$540 million) was dedicated to technology development and innovation centres, further enhancing the downstream rare earths supply chain.
The government support is a significant vote of confidence in Viridion’s potential to lead Brazil’s rare earth sector, particularly in the recycling of end-of-life (EOL) magnets and swarf into high-purity rare earth oxides. This aligns with Brazil’s ambitions to position itself as a leader in the clean energy supply chain.
First delivery of recycled rare earths sets the stage
The funding win comes after Viridion’s recent delivery of the first recycled neodymium (Nd), praseodymium (Pr), dysprosium (Dy) and terbium (Tb) oxides to the CIT SENAI-Lab Fab facility in Lagoa Santa, Minas Gerais, representing the first locally sourced REOs in Brazil, produced from Brazilian EOL magnets.
IonicRE managing director Tim Harrison said the government’s backing would significantly fast-track Viridion’s plans for establishing a recycling and refining infrastructure in Brazil.
“We welcome this selection from BNDES and FINEP, which was based on a competitive bidding process and represents an enormous vote of confidence in Viridion and the future of our Brazilian downstream rare earth business,” Harrison said.
“We are now progressing talks aimed at finalising the funding package and look forward to delivering on Brazil’s ambitions to become a leader in this key industry in the 21st century for advanced manufacturing and renewables.”
Strategic positioning for Brazil’s growing demand
Brazil, already the world’s seventh-largest wind energy market, continues to expand its renewable energy capacity, which is expected to increase demand for rare earths essential for the production of electric vehicles (EVs) and wind turbines. With Viridion’s plans to produce magnet-grade REOs, the joint venture aims to meet the rising local demand for high-performance magnets, critical for the nation’s growing green energy and manufacturing sectors.
The funding will also support the development of pilot plants in Minas Gerais, an area strategically located near Viridion’s existing operations. The construction of these plants will help supply the growing demand for REOs, supporting not only Brazil’s clean energy ambiti
