Ionic Rare Earths Ltd (ASX:IXR, OTC:IXRRF), through its Viridion joint venture, has delivered its first shipment of recycled rare earth oxides (REOs) to Brazilian magnet manufacturing partners — a major step in building a domestic rare earth supply chain in South America’s largest economy.
Produced at the JV’s Belfast facility using end-of-life magnets recovered in Brazil, the shipment includes high-purity neodymium, praseodymium, dysprosium and terbium oxides – key inputs for permanent magnet production.
Recycled high-purity Nd, Pr, Dy, Tb oxides delivered to CIT SENAI ITR / FIEMG, originating from end-of-life magnets recovered in Brazil and processed at Ionic Technologies’ facility in Belfast, UK.
According to IonicRE, the deliver marks the first time locally sourced and recycled magnet REOs have been returned to Brazil for reintegration into the manufacturing process.
Testing Brazilian feedstock for alloy and magnet production
The oxides have been delivered to the CIT SENAI-LabFab facility in Lagoa Santa, Minas Gerais – a key partner in the Viridion initiative between IonicRE and fellow ASX-lister Viridis Mining and Minerals Ltd (ASX:VMM). There, they will undergo demonstration-scale processing to validate their suitability for use in rare earth alloy and magnet manufacturing.
Initial experiments will test the quality and performance of the recycled material, with the goal of scaling up domestic magnet production to 100 tonnes per year by the end of 2026.
“We welcome this development, which represents a major milestone for both IonicRE and our Viridion JV, as we progress our global rollout, establishing domestic capability in Brazil and leveraging our technology to accelerate new rare earth supply chains based on recycling,” IonicRE managing director Tim Harrison said.
“IonicRE is building a global industrial business, and Brazil is an important piece of this puzzle, being a major advanced manufacturer at the heart of the South American economy,” he added. “We look forward to advancing our partnership with Viridis, which has the potential to be a significant disruptor to current monopolised global supply.”
Closing the loop with long-loop tech
The recycled feedstock was processed using Ionic’s proprietary hydrometallurgical ‘long-loop’ technology at its demonstration plant in Belfast. The process extracts high-purity neodymium, praseodymium, dysprosium and terbium oxides from end-of-life magnets.
These four magnet REOs are critical for producing permanent magnets used in electric vehicles, wind turbines, electronics and defence applications. With most of the global supply chain controlled by China, initiatives like Viridion are gaining traction as nations look to reduce import reliance and improve supply chain resilience.
Viridion – a 50:50 JV between Ionic Technologies International Ltd (a wholly owned IonicRE subsidiary) and Brazilian group Less Common Metals do Brasil – aims to establish South America’s first domestic magnet REO refining and recycling capability.
Government backing for critical minerals push
The initiative is supported by Brazil’s broader MagBras Project, which aims to foster a low-carbon, innovation-led industrial ecosystem. The project has received US$13 million in funding through the Brazilian government’s MOVER program.
CIT SENAI’s innovation and technology manager José Luciano Pereira said the testing phase would provide a technical assessment of the REOs’ viability for high-performance applications.
“It is an important step and, without a doubt, a milestone for all involved – [Brazilian industry federation] FIEMG, SENAI, Viridion and other partners – in building a national rare earths supply chain based on innovation and sustainability,” he said.
Brazil’s commitment to critical minerals development continues to strengthen. In early 2025, the federal government pledged US$815 million in transition-related funding, while development agencies BNDES and FINEP allocated a combined R$8 billion (US$1.4 billion) for mining projects focused on strategic minerals and supply chain value-add.
Viridion's strategic vision for Brazil
Formed in April 2024, the Viridion JV holds exclusive rights in Brazil to commercialise Ionic’s magnet recycling IP. Its strategy includes deploying pilot recycling and REO separation facilities near Viridis’ Colossus Project operations in Minas Gerais, with ongoing discussions underway with Invest Minas and other stakeholders.
“The project led by Viridis/Viridion has the has the potential to meet up to 7% of magnetic rare earth oxides’ global demand, representing a strategic breakthrough that can significantly reduce dependence on international markets, especially China, for crucial inputs essential to the energy transition,” said Flávio Roscoe, president of FIEMG, one of Viridion’s institutional supporters.
IonicRE executive chairman Brett Lynch described Brazil as a “key part” of the company’s global expansion, which includes plans to replicate its magnet recycling platform across the UK, Europe, Asia, and the Americas.
“With China moving to restrict rare earth exports, the rest of the world has a necessity to develop its own supply chains,” Lynch said. “IonicRE offers one of the fastest pathways to developing this supply in a secure and sustainable manner, with the lowest carbon footprint and low-capex development model compared to mining.”