Ionic Rare Earths Advances Funding for Brazil Rare Earths Joint Venture with Viridion

Ionic Rare Earths has been selected to progress with a R$5 billion (~US$900 million) funding package from the Brazilian National Bank for Economic and Social Development (BNDES) and Federal Agency for Funding Authority for Studies and Projects (FINEP) to support its 50/50 joint venture with Viridis Mining and Minerals Ltd, Viridion. The funding will support rare earth refining and magnet recycling in Brazil and is expected to include grants, debt, and equity. Viridion aims to finance pilot and demonstration-scale refining and magnet recycling facilities, metallurgical testing, feasibility studies, and capacity building. The CRITR facility is expected to begin operations in the second half of 2026, pending regulatory and financial approvals.

Ionic Rare Earths Ltd (IXR) has been selected to progress with a R$5 billion (~US$900 million) funding package from the Brazilian National Bank for Economic and Social Development (BNDES) and the Federal Agency for Funding Authority for Studies and Projects (FINEP) to support its 50/50 joint venture with Viridis Mining and Minerals Ltd, known as Viridion. The funding will support rare earth refining and magnet recycling in Brazil and is expected to include grants, debt, and equity. Viridion aims to finance pilot and demonstration-scale refining and magnet recycling facilities, metallurgical testing, feasibility studies, and capacity building. The CRITR facility is expected to begin operations in the second half of 2026, pending regulatory and financial approvals.

The funding package aligns with Brazil's strategic minerals initiative, which aims to develop domestic supply chains for minerals critical to the global energy transition. The initiative includes a BRL$5 billion (~US$903 million) funding pool for strategic minerals projects, including commercial-scale plants, pilot facilities, and demonstration projects. This initiative supports Brazil's "New Industry Brazil" policy, which seeks to reduce dependency on foreign suppliers and establish leadership in the clean energy supply chain.

The CRITR facility is a significant milestone for Viridis and IXR, as it represents one of the most substantial rare earth element developments outside China. The project boasts impressive mineral resources, with high proportions of magnet rare earth oxides (MREOs), which are essential components in technologies driving the global energy transition, such as electric vehicles and wind turbines. The project's high percentage of MREOs, over 81% of the total rare earth content, sets it apart from competing projects globally.

The funding package positions Viridis and IXR to capture a significant share of the global rare earths supply chain, which is currently dominated by China. The company's integrated approach to rare earth production, through its joint venture with IXR, provides access to proven, patented refining and recycling technology. This technology was recently validated by successfully delivering high-purity neodymium (Nd), praseodymium (Pr), dysprosium (Dy), and terbium (Tb) oxides to CIT SENAI, Latin America's only magnet manufacturer.

The selection for the BNDES/FINEP funding process significantly de-risks the project and potentially provides substantial non-dilutive capital. Additionally, the company's strong project economics, demonstrated by the recently completed Pre-Feasibility Study (PFS), and clear execution plan make Viridis a compelling opportunity in the rare earths sector.

With the latest funding milestone, Viridis is executing a clear roadmap to production, including environmental permitting, project financing, offtake strategy, and definitive feasibility studies. The company's strategic positioning in a sector critical to the energy transition, combined with substantial government backing and clear execution plan, makes Viridis a rare earth developer worth watching as it progresses toward production.

References:
[1] Reuters. (2025). Ionic Rare Earths Ltd IXR: Co's Brazilian JV, Viridion, progresses through 2nd phase of evaluations for R$5 billion funding package. Retrieved from https://www.tradingview.com/news/reuters.com,2025:newsml_FWN3TM1WT:0-ionic-rare-earths-brazilian-jv-viridion-progresses-through-2nd-phase-of-evaluations-for-r-5-bln-funding-package/
[2] Discovery Alert. (2025). Viridis Secures Major Funding Opportunity with Brazil's US$903M Strategic Minerals Initiative. Retrieved from https://discoveryalert.com.au/news/viridis-major-funding-opportunity-2025-brazil/
[3] Proactive Investors. (2025). American Resources Corp (NASDAQ:AREC) subsidiary ReElement expands team to support rare earth refining growth. Retrieved from https://www.proactiveinvestors.com/companies/news/1075386/american-resources-subsidiary-reelement-expands-team-to-support-rare-earth-refining-growth-1075386.html?region=ca