Ionic Rare Earths Ltd (ASX:IXR, OTC:IXRRF) has advanced to the next stage of assessment for a R$5 billion (~US$900 million/~A$1.37 billion) funding package from the Brazilian National Bank for Economic and Social Development (BNDES) and Federal Agency for Funding Authority for Studies and Projects (FINEP) in Brazil. The company’s 50/50 joint venture with Viridis Mining and Minerals Ltd (ASX:VMM), Viridion, has been selected to progress with a Joint Support Plan. The funding is expected to include grants, debt and equity and will support rare earth refining and magnet recycling in Brazil.
“This is very welcome news for our Viridion joint venture in Brazil, which continues to pick up speed thanks to the strong support from our joint venture partner and the Brazilian authorities,” IonicRE managing director Tim Harrison said.
“The successful evaluation of our Viridion proposal against other competing opportunities highlights that Viridion has both a unique and strategically important offering, for the development of strategic mineral value addition capacity in Brazil.
“We have demonstrated both our technical offering and commitment to a Brazilian rare earth supply chain through the recycled REOs we delivered to our magnet partners CIT SENAI in May 2025."
Funding scope and application
The proposed funding is part of a R$5 billion strategic initiative to support value-added mineral development.
Viridion’s application aims to finance pilot and demonstration-scale refining and magnet recycling facilities, metallurgical testing, feasibility studies, and capacity building.
An additional R$3 billion (~US$540 million) second-round funding pool — launched in February 2025 — targets innovation hubs, which aligns with Viridion’s recent land acquisition for the CRITR facility in Poços de Caldas, Minas Gerais.
Viridion’s selection highlights the Brazilian government’s confidence in its capacity to enhance downstream processing of rare earths, which are vital to clean energy technologies. The initiative also supports Brazil’s positioning as an alternative source of rare earths, amid increasing global supply chain concerns following China’s export restrictions. The CRITR facility is expected to begin operations in the second half of 2026, pending regulatory and financial approvals.
“IonicRE and Viridion are grateful for the support of BNDES and FINEP, and together with VMM, we look forward to agreeing the funding package and finalising details for the support structure plan in the coming weeks and commencing activity on the CRITR facility in Poços de Caldas,” Harrison said.
IonicRE executive chairman Brett Lynch said: “Brazil is set to become a major rare earth production centre, and this latest achievement by our Viridion joint venture only further highlights the opportunity.
“IonicRE via Viridion is rapidly moving to become a leader in the Brazilian market, based on our patented magnet recycling technology, which offers Brazil the potential for a secure, sustainable and sovereign rare earth supply chain.
“Recycling and refining is key to our strategic offering, and we aim to fulfil a key need in an emerging supply chain for this South American giant, adding to our international expansion across the UK/Europe, North America and Asia.”
Technology and strategic positioning
The JV aims to commercialise Ionic Technologies’ patented separation and magnet recycling technology, with exclusive rights across Brazil (excluding Asia and Uganda).
This includes converting Brazilian end-of-life (EOL) magnets into high-purity separated rare earth oxides (REOs), as demonstrated by May’s delivery of recycled REOs to CIT SENAI’s magnet manufacturing facility in Minas Gerais.
The CRITR facility will build on this work.
Alignment with Brazil’s industrial policy
Viridion’s development aligns with Brazil’s “Nova Indústria Brasil” policy, which seeks to promote local technological development and reduce dependence on imported critical minerals. Brazil’s strong wind energy and emerging electric vehicle sectors are expected to drive domestic demand for REOs, with Viridion well placed to serve this growing market.
Established in April 2024, the 50/50 JV — Viridion Pty Ltd in Australia and Viridion Rare Earth Technologies Ltda in Brazil — holds global rights (excluding Asia and Uganda) to Ionic Technologies’ intellectual property for separating REOs from mixed rare earth carbonate and recycling magnets. It is positioned to become South America’s first major producer of separated magnet REOs.