Viridis Makes History: First Rare Earth Oxides Delivered to Latin America's Only Magnet Manufacturer
In a groundbreaking development for the global rare earth supply chain, Viridis Mining and Minerals Ltd (ASX: VMM) has successfully delivered the first locally sourced magnetic rare earth oxides to Latin America's only magnet manufacturing facility. This milestone marks a critical step in establishing a secure, non-Chinese rare earth supply chain in Brazil.
Historic First: Building Brazil's Rare Earth Independence
Viridis, through its joint venture with Ionic Rare Earths Limited (ASX: IXR) called Viridion, has delivered high-purity neodymium, praseodymium, dysprosium, and terbium oxides to the CIT SENAI ITR facility in Lagoa Santa, Brazil. These essential elements were sourced from end-of-life magnets recovered within Brazil, primarily from decommissioned MRI machines and wind turbine generators.
After collection and pre-processing in Brazil, the magnets underwent advanced hydrometallurgical separation at Ionic Technologies' facility in Belfast, UK, before returning to Brazil as high-purity individual oxides.
This achievement positions Viridion as the only local source of rare earth oxides in Brazil and broader Latin America – a strategic advantage as global supply chains face increasing pressure from China's export restrictions.
Flávio Roscoe, President of FIEMG (Federation of Industries of the State of Minas Gerais), emphasised the significance: "This is a historic process highlighting the importance of recycling. The project led by Viridis/Viridion 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."
Creating a Complete Rare Earth Supply Chain Outside China
This delivery represents more than just a technical achievement—it's a key component of Viridis' strategy to develop a fully integrated rare earth supply chain in Brazil, from mining to magnet production, outside of China's dominance.
The company's Colossus Project has already demonstrated its credentials as the lowest-cost rare earth producer globally according to its recent Scoping Study, with exceptional economics even amid today's cyclical low rare earth prices.
"With the Colossus Project now firmly established as one of the leading rare earth projects worldwide, leveraging IXR's industry-leading technology is now a reality, and we look forward to progressing on the pathway to creating a circular mine to magnet supply chain," said Rafael Moreno, Chief Executive Officer of Viridis.
What Are Magnetic Rare Earth Oxides?
Magnetic rare earth oxides (MREOs) are specialised compounds containing elements like neodymium, praseodymium, dysprosium, and terbium. These elements are critical for manufacturing the powerful permanent magnets used in electric vehicles, wind turbines, and various high-tech applications.
Unlike conventional metals, rare earth elements have unique electronic configurations that give them exceptional magnetic properties. When processed into oxides and then into metals, they can create magnets up to 20 times stronger than traditional ferrite magnets.
For investors, understanding MREOs is crucial because they represent the highest-value segment of the rare earth market. While light rare earths like cerium and lanthanum are relatively abundant, the magnetic rare earths command premium prices due to their critical applications in green technology and limited supply outside China.
Major Funding Opportunities Align with Viridis' Strategy
The timing of this achievement is notable for Viridis, as Brazil's development institutions have recently launched significant funding initiatives for critical minerals projects:
- The Brazilian Development Bank (BNDES) and the Financier of Studies and Projects (FINEP) have allocated R$5 billion (~US$880 million) to support business plans focused on transforming strategic minerals in Brazil
- An additional R$3 billion (~US$530 million) has been dedicated to establishing Research, Development and Innovation centres across Brazil
These funding opportunities align with Viridis' strategy of developing a fully integrated rare earth supply chain in Brazil, from mining to separation and recycling.
Technology and Partnership Advantages
Viridis' joint venture with Ionic Rare Earths provides exclusive access to two key technologies:
- Selective Separation Technology (SST) – to recover rare earth oxides from concentrates and carbonates
- Rare Earth Recycling Technology (RRT) – with exclusive rights for commercialisation in Brazil
These technologies, combined with the company's Colossus resource, create a value proposition that sets Viridis apart from other rare earth developers globally.
The recycling capability is particularly significant, as it allows for a circular economy approach to rare earth production—an increasingly important consideration for ESG-focused investors and customers.
Impressive Resource Base Supports Long-Term Growth
The foundation of Viridis' rare earth strategy is its Colossus Project, which presents substantial resource statistics:
| Classification | Million Tonnes | TREO (ppm) | MREO (ppm) | Contained TREO (kt) | Contained MREO (kt) |
|---|---|---|---|---|---|
| Measured | 95.8 | 1,716 | 437 | 164.4 | 41.8 |
| Indicated | 233.6 | 1,644 | 407 | 384.1 | 95.1 |
| Inferred | 119.2 | 1,490 | 360 | 177.7 | 42.9 |
| Total | 448.6 | 1,619 | 401 | 726.2 | 179.8 |
With 726,200 tonnes of contained total rare earth oxides and 179,800 tonnes of magnetic rare earth oxides, the Colossus Project provides a substantial resource base to support decades of production.
Clear Path Forward
Viridis has outlined several key initiatives to advance the Colossus Project:
- Progressing a detailed pre-feasibility study with Hatch, on track for completion by the end of Q2 2025
- Preparing technical assessments for the Environmental Installation License following the successful submission of the Environmental Impact Assessment
- Continuing discussions with potential strategic off-takers and project financing partners
Why Investors Should Follow Viridis Mining & Minerals
Viridis represents an opportunity to invest in a company that's positioned at the intersection of several market trends:
- Supply Chain Security – As geopolitical tensions increase, Western nations are seeking non-Chinese rare earth supplies
- Green Energy Transition – Magnetic rare earths are essential for electric vehicles and wind turbines
- Circular Economy – Viridis' recycling capabilities align with growing ESG requirements
- Cost Leadership – The Colossus Project is positioned as the lowest-cost rare earth producer globally
- Government Support – Strong backing from Brazilian authorities with substantial funding opportunities
With its integrated approach spanning mining, processing, separation, and recycling, Viridis is establishing itself as one of the strategically positioned rare earth companies globally. As the company progresses toward production, it offers investors exposure to the critical minerals that will power the next generation of clean energy technologies.
The delivery from Viridis Mining and Minerals Ltd represents not just a technical milestone, but validation of the company's vision to create a secure, sustainable rare earth supply chain outside of China's control.
Ready to Invest in Brazil's Rare Earth Revolution?
Discover how Viridis Mining and Minerals is creating Latin America's first fully integrated rare earth supply chain from mine to magnet. With the lowest-cost production potential globally and exclusive access to cutting-edge separation and recycling technologies, Viridis offers a compelling investment opportunity in the critical minerals powering our green energy future. Download the latest ASX announcement to learn how this historic milestone positions Viridis at the forefront of non-Chinese rare earth supply.
