Ionic Rare Earths Ltd (ASX:IXR, OTC:IXRRF) has received a significant boost in its efforts to establish a sovereign rare earth supply chain in Brazil, with its 50/50 joint venture, Viridion Rare Earth Technologies Ltda, officially granted 2,071 square metres of land by the Municipality of Poços de Caldas, Minas Gerais.
The land will serve as the foundation for the construction of the Centre for Rare Earths Innovation, Technology and Recycling (CRITR), marking a major step towards creating South America’s first rare earth refining and recycling hub.
The land grant also highlights strong local and governmental support for Viridion, a partnership between IonicRE and Viridis Mining and Minerals Ltd (ASX:VMM), with the Poços de Caldas City Council’s unanimous approval demonstrating the municipality's commitment to advancing sustainable technologies within the region. The facility is expected to commence operations in the second half of 2026, subject to regulatory approvals and funding.
Brazil's pivotal role in the global rare earth supply chain
The establishment of the CRITR is in alignment with Brazil's national industrial policy and its "New Industry Brazil" (Nova Indústria Brasil) strategy. The facility is set to serve as a pilot-scale refining and recycling unit, processing Mixed Rare Earth Carbonate (MREC) from Viridis Mining’s Colossus Project and recycled neodymium iron born (NdFeB) magnets sourced from Brazil’s growing e-waste streams. CRITR will also support magnet recycling partnerships with local manufacturers and recyclers, contributing to Brazil’s clean energy transition.
Satellite image of the Industrial Zone in Poços de Caldas, highlighting the area designated for developing technology centres in partnership with the private sector.
“We are extremely appreciative to the municipality of Poços de Caldas, the state of Minas Gerais, the Brazilian federal authorities, and all local stakeholders for their magnificent support as we build South America’s first rare earth refining, recycling, and innovation centre in Minas Gerais,” said IonicRE managing director Tim Harrison. He also highlighted the importance of the project for Brazil's industrial development.
“The award of this significant land parcel is an important first step in building the CRITR, which aligns with Brazilian national policy in developing a sovereign and sustainable rare earth supply chain.”
Strong government backing and funding prospects
The project has already received substantial backing from key Brazilian institutions. Viridion was selected by the Brazilian National Bank for Economic and Social Development (BNDES) and the Federal Agency for Funding Authority for Studies and Projects in Brazil (FINEP) to participate in a R$5 billion (~US$900 million) program aimed at developing rare earth refining and recycling facilities across the country.
IonicRE executive chairman Brett Lynch noted Brazil’s growing importance in the global rare earths market, emphasising the role the country will play in developing a sustainable supply chain for industries such as electric vehicles (EVs) and renewable energy systems.
“Brazil is a critical piece of this strategy, and we are delighted to help lead the development of a sovereign rare earths supply chain in Brazil, one of the world’s major advanced manufacturers and an emerging leader in the renewables sector.”
Supporting a circular economy
CRITR will not only be the first facility in Brazil and Latin America dedicated to rare earth recycling and refining but will also integrate sustainability practices aimed at reducing the environmental impact of rare earth extraction. The facility will adopt a circular economy model, focusing on recovering high-purity rare earth oxides (REOs) from end-of-life magnets, such as those used in wind turbines and MRI machines.
The refining process will produce high-purity separated REOs, including neodymium (Nd), praseodymium (Pr), dysprosium (Dy) and terbium (Tb), all essential for the production of permanent magnets used in clean energy technologies.
Recycled high-purity Nd, Pr, Dy, Tb oxides delivered to CIT SENAI ITR / FIEMG in May 2025, originating from end-of-life magnets recovered in Brazil and processed at Ionic Technologies’ facility in Belfast, UK.
The CRITR will be equipped with state-of-the-art, low-impact refining technology, ensuring minimal environmental impact compared to traditional mining methods.
“Our model shows the importance of magnet recycling as a near-term solution in developing a secure and sustainable ex-China rare earths supply chain, with relatively low capex, rapid development timeframes, and lower emissions compared to conventional mining,” Lynch said.