Transatlantic Rare Earth Strategy Takes Shape as Viridion JV Targets US Refining Facility
Viridis Mining and Minerals (ASX: VMM) is making bold moves to establish a sovereign rare earth supply chain spanning Brazil and the United States, positioning itself as a key player in the global shift away from Chinese dominance in critical minerals. The company's 50/50 joint venture with Ionic Rare Earths (ASX: IXR), known as Viridion, is now targeting US expansion with plans for a Viridis Mining and Minerals US rare earth refinery to complement its Brazilian operations.
This strategic development comes at a crucial time as both Brazil and the US intensify efforts to secure domestic supply chains for critical minerals essential to clean energy transition and defence applications.
Strategic US Expansion Targets Critical Supply Chain Gaps
Following strong progress in Brazil, where Viridion has already delivered the country's first recycled magnet rare earth oxides, the JV is now updating a scoping study for a US-based rare earth refinery. The facility would process Mixed Rare Earth Carbonate (MREC) from Viridis' flagship Colossus Project in Brazil using proprietary separation technology from IXR's UK subsidiary, Ionic Technologies.
The US refinery would be positioned to supply critical rare earth materials to North American manufacturers in automotive, defence, and renewable energy sectors, where demand for sustainable, traceable REOs continues to grow amid supply chain concerns.
The updated scoping study, expected in H2 2025, builds on IXR's existing work that assessed a Tennessee-based facility capable of producing approximately 4,000 tonnes per annum of separated rare earth oxides (REOs).
"Viridion's rapid progress underscores the strength of our partnership and the strategic significance of our work. The successful delivery of Brazil's first locally sourced recycled magnet rare earth oxides, combined with strong support from the Brazilian Government, highlights our ability to lead in this critical sector," said Rafael Moreno, Chief Executive Officer.
Brazilian Government Backing Accelerates Development
Viridion's expansion ambitions have received significant governmental support, with the JV recently selected under Brazil's US$1.4 billion Strategic Minerals Program led by the Brazilian National Bank for Economic and Social Development (BNDES) and the Federal Agency for Funding Authority for Studies and Projects (FINEP).
This backing has enhanced Viridion's global standing and accelerated progress toward constructing local refining and recycling assets, creating a foundation for exporting proven technology to the proposed US facility.
Understanding MREC: The Key to Rare Earth Processing
What is Mixed Rare Earth Carbonate?
Mixed Rare Earth Carbonate (MREC) is a critical intermediate product in the rare earth supply chain. It represents a concentrated form of rare earth elements after initial processing but before separation into individual rare earth oxides.
MREC from Viridis' Colossus Project is particularly valuable because it offers:
- Premium-grade feedstock with minimal impurities and negligible radionuclides
- Strong project economics that remain viable even in low-price environments
- Consistent performance across market cycles
- A versatile input for both Brazilian and potential US refining operations
For investors, understanding MREC is crucial because it represents the bridge between mining operations and high-value separated rare earth products. The quality of MREC directly impacts downstream processing costs and final product purity.
Viridion JV: Creating a Vertically Integrated Rare Earth Supply Chain
Formed in April 2024, the Viridion joint venture combines Viridis' high-quality feedstock from the Colossus Project with IXR's patented separation and recycling technology. The JV holds exclusive global rights (excluding Asia and Uganda) to Ionic Technologies' intellectual property for MREC refining and magnet recycling.
The partnership is advancing a multi-faceted approach to rare earth production:
- Recycling: Already producing Brazil's first recycled magnet REOs from end-of-life magnets and swarf
- Refining: Evaluating pilot plant sites in Brazil for both refining and recycling operations
- International expansion: Planning US refining capacity to create a sovereign, multi-asset supply chain
This approach positions Viridion to benefit from both primary and secondary rare earth sources, creating a more sustainable and resilient business model.
Colossus Project: The Foundation of Viridis' Strategy
The Colossus Project in Brazil serves as the cornerstone of Viridis' rare earth strategy, providing the high-quality feedstock necessary for downstream processing. The company is advancing several initiatives to bring this project online:
- Pre-Feasibility Study: Ongoing work with Hatch, scheduled for completion by end of Q2 2025
- Environmental Licensing: Following the January 2025 submission of the Environmental Impact Assessment for the Preliminary Environmental License, technical assessments for the Installation License are underway
- Project Financing and Offtake: Discussions with potential strategic off-takers, financing institutions, and partners continue to progress
Investment Thesis: Positioned for Growth in a Critical Sector
Viridis is strategically positioned at the intersection of several powerful market trends:
Supply Chain Resilience
As Western nations prioritise secure supply chains for critical minerals, Viridis' Brazil-US strategy offers a compelling alternative to Chinese dominance. China's recent export restrictions on certain rare earth elements (effective April 2025) only heighten the strategic value of ex-China suppliers.
Vertical Integration
By controlling multiple stages of the rare earth value chain—from mining to refining and recycling—Viridis can capture more value and insulate itself from price volatility in any single segment of the market.
Government Support
With explicit backing from the Brazilian government and alignment with US strategic priorities, Viridis benefits from both policy tailwinds and potential access to government funding programmes focused on critical minerals.
Market Differentiation
The company's focus on a high-quality, low-impurity MREC product from Colossus creates a competitive advantage, with the project reportedly capable of delivering strong returns "even in today's low-price environment."
Why Investors Should Follow Viridis
Viridis represents a differentiated opportunity in the rare earth elements sector due to several key factors:
- Transatlantic approach: The Brazil-US strategy creates multiple pathways to market and reduced geopolitical risk
- Proven technology: Through partnership with IXR, Viridis accesses established separation and recycling technology
- Governmental backing: Selection for Brazil's Strategic Minerals Program validates the company's approach
- Vertical integration: Control of mining, refining, and recycling provides multiple value capture opportunities
- Near-term catalysts: The upcoming PFS completion, environmental licensing milestones, and US refinery scoping study all represent potential value-driving events
As global competition for secure rare earth supplies intensifies, Viridis' dual-continent approach positions the company as a potential leader in establishing a sustainable and independent supply chain outside China. With its flagship Colossus Project as the foundation and the Viridion JV enabling downstream capabilities, Viridis Mining and Minerals US rare earth refinery offers investors exposure to the full rare earth value chain in Western-aligned jurisdictions.
Key Takeaway:
Viridis Mining and Minerals has positioned itself as a potential major player in rare earth supply chain development, with significant upside potential due to its vertically integrated approach spanning Brazil and the United States. With upcoming milestones including PFS completion in Q2 2025 and a US refinery scoping study in H2 2025, investors should keep a close eye on developments as this dual-continent strategy unfolds.
Ready to Invest in a Transatlantic Rare Earth Leader?
Don't miss this opportunity to be part of Viridis Mining and Minerals' ambitious journey to establish a sovereign rare earth supply chain spanning Brazil and the United States. With strong government backing, vertical integration from mining to refining, and a strategic joint venture already delivering results, VMM is positioned at the forefront of Western critical minerals development. Click here to access the latest ASX announcement and discover how this dual-continent strategy could deliver significant shareholder value as global demand for secure rare earth supplies continues to grow.
