Highlights

• Brazilian government provides strategic financial backing to Viridion's rare earth refining and magnet recycling project.
• The initiative aims to create Latin America's first fully integrated rare earth magnet supply chain.
• Project targets 100 tonnes of magnet production annually by 2026.
• Directly addresses global supply chain vulnerabilities by reducing dependence on Chinese rare earth exports.

In a major boost to Western rare earth independence, the Brazilian government has selected the Viridion joint venture—formed by Ionic Rare Earths (opens in a new tab) (ASX: IXR) and Viridis Mining and Minerals (opens in a new tab) (ASX: VMM)—to receive strategic financial backing from its US$903 million critical minerals program.

Announced by the National Bank for Economic and Social Development (BNDES (opens in a new tab)) and the innovation agency FINEP (opens in a new tab), the award will support Viridion’s plan to develop Latin America’s first fully integrated rare earth refining and magnet recycling supply chain. Funding discussions are now underway, with potential instruments including grants, debt facilities, and equity.

Viridion’s proposal features commercial-scale refining and recycling plants, magnet waste processing, and NdFeB magnet production, anchored by its Colossus Project in Minas Gerais. Recycled Neodymium, Praseodymium, Dysprosium, and Terbium oxides have already been delivered to CIT SENAI’s Lab Fab facility—marking a national first.

“This support is a turning point,” said Rafael Moreno (opens in a new tab), CEO of Viridis. “It accelerates our timeline and puts Brazil at the center of a sustainable, ex-China magnet supply chain.”

The selection comes amid global urgency: China’s tightened export controls have disrupted global autoproduction, spotlighting supply chain vulnerability for rare earth magnets. Viridion’s domestic capabilities directly address this risk.

A second R$3 billion (~US$540 million) funding round announced earlier this year could further bolster downstream technology development, with Viridion positioned to benefit from early execution.

IXR Managing Director Tim Harrison (opens in a new tab) emphasized that “Brazil’s financial backing, combined with our technology and early delivery of recycled REOs, demonstrates real momentum. We’re building a closed-loop rare earth magnet ecosystem.”

According to IonicRE Chairman Brett Lynch (opens in a new tab), “This is not just funding—it’s a geopolitical signal. Brazil is stepping up to challenge China’s monopoly with strategic infrastructure and innovation.” 

Viridion is in talks with state authorities in Minas Gerais to locate pilot facilities near Colossus. The region’s magnet production target is 100 tonnes annually by 2026, supporting both domestic demand and export opportunities. Rare Earth Exchanges (REEx) continues to closely monitor Brazil's activity for our project rankings.