Viridion, a 50:50 joint venture between ASX-listed Viridis Mining and Minerals (ASX: VMM) and Ionic Rare Earths (ASX: IXR), has been selected by Brazil’s BNDES and FINEP to receive financial backing under a US$903 million funding program for strategic minerals.
The selection follows a competitive process initiated in January 2025 by the Brazilian National Bank for Economic and Social Development (BNDES) and the innovation agency FINEP. The initiative is designed to accelerate development of domestic value chains for minerals critical to energy transition and decarbonisation.
Having now been formally selected, Viridis and Viridion will immediately commence discussions with BNDES and FINEP to finalise the details. Those items being, funding amount and funding structure, which potentially includes economic grants, debt facility and equity participation.
Major Funding for Rare Earth Supply Chain
Viridion’s proposal includes construction of pilot and commercial plants for rare earth refining and magnet recycling, metallurgical testing, feasibility studies, and acquisition of long lead equipment. It will also support capacity building across Brazil’s rare earths sector.
Viridis CEO Rafael Moreno said, “This funding represents a significant milestone for both Viridis and our joint venture, Viridion, enabling us to accelerate our development timeline and move decisively toward establishing the first fully integrated rare earths supply chain outside of China.”
Viridion was selected based on the maturity of their projects and demonstrated economic feasibility. Their Colossus Project in Minas Gerais and rare earth refining technology are central to Brazil’s strategic ambitions.
Recycled Oxides Already Delivered
In May, Viridion successfully delivered high-purity Neodymium, Praseodymium, Dysprosium, and Terbium oxides to CIT SENAI’s Lab Fab innovation facility in Minas Gerais. The oxides were produced using Ionic Rare Earths’ magnet recycling technology and mark the first locally sourced rare earth oxides recycled in Brazil.
IXR Managing Director Tim Harrison said, “Viridion is picking up speed with last month’s delivery of the nation’s first locally sourced REOs, a major milestone in the development of a Brazilian rare earth permanent magnet supply chain.”
The Brazilian government’s financial support comes amid growing geopolitical concerns over rare earth supply constraints. China has tightened export controls, and global automakers have reported production disruptions due to insufficient access to magnet rare earths.
Second Funding Round Offers More Potential
Following the initial R$5 billion (~US$903 million) public call, FINEP and BNDES announced an additional R$3 billion (~US$540 million) in February 2025 to support downstream technology innovation. Viridion is well positioned to benefit, with further funding expected to follow its early commercial success.
According to IonicRE Executive Chairman Brett Lynch, “Funding is crucial to fast-tracking our development plans, and this government support will help ensure Viridion is on the front foot with potential partners, off-takers and suppliers.”
Lynch added, “The latest reports of global automakers shutting production lines due to insufficient rare earth supplies only further demonstrates the urgent need for an ex-China, secure and sustainable rare earths supply chain.”
Building Brazil’s Rare Earth Magnet Industry
Viridion is in discussions with Minas Gerais state authorities to establish pilot plants near the Colossus Project. CIT SENAI’s Lab Fab facility is targeting NdFeB magnet production of 100 tonnes per annum by 2026. Waste streams from ramp-up activities will also be recycled to create a closed-loop system.
