Ionic Rare Earths (ASX:IXR) and Viridis Mining and Minerals (ASX:VMM) have signed a five-year memorandum of understanding with SENAI FIEMG Innovation and Technology Centre, owner of South America’s first rare earth magnet laboratory.
In April 2024, Ionic and Viridis executed a binding term sheet for commercialising selection separation technology to recover rare earth oxides (REOs) from concentrates and carbonates feed, and exclusive rights to commercialise the Rare Earth Recycling Technology in Brazil.
Ionic, which has a market capitalisation of $43.82 million, says it is positioned to become the first major producer of the full suite of refined magnet REOs in South America.
As a result of the term sheet, the Viridion JV was formed. Viridion holds the exclusive global rights to Ionic Technologies’ separation intellectual property (IP) to produce REOs from mixed rare earth carbonate or equivalent intermediate feed streams, and own any new IP developed from the commercialisation process.
Viridion also holds exclusive rights in Brazil to monetise, implement, and commercialise Ionic Technologies’ magnet recycling IP.
The initial five-year memorandum of understanding (MoU) was signed between Viridion and SENAI FIEMG Innovation and Technology Centre during a state visit.
The agreement aims to establish a basis for cooperation between Viridion and SENAI Regional Department, with a view to jointly develop and produce rare earth magnets at Lab Fab in Minas Gerais, Brazil.
Under the MoU, Viridion will supply raw materials for pilot production of rare earth magnets, and both companies agree to promote actions to strengthen the parties and, consequently, their relations with industries interested in the technologies.
Both companies also agree to develop joint projects of applied research, assessment activities, experiments, training, consulting, and specialised technological services.
Further, the companies will implement other joint activities and programs, as well as pilot and experimental programs in areas and subjects of mutual interest and benefit that may be agreed upon between the parties.
Managing Director Tim Harrison says this agreement is a major step forward for the Viridion JV, helping to unlock magnet recycling’s role in developing initial rare earths supply chains in new markets.
“The production of magnet rare earth oxides within Brazil will enable the ramp up of magnet production capability at CIT SENAI’s Lab Fab facility, which is targeting a ramp up in neodymium-iron-boron production to 100 tonnes per annum by the end of 2026,” Harrison says.
“By working with Lab Fab, we will also be able to recycle waste streams produced in the ramp up of activities, which will enable the development of a truly insulated, secure neodymium-iron-boron supply chain in Brazil that can support significant advanced manufacturing activities underway in that market.”
Harrison adds that having recently hosted delegates from Invest Minas to the facility in the UK, alongside discussing the company’s vision for the potential Brazilian rare earth supply chain, the company will now look to replicate what was achieved at Belfast.
This aims to help SENAI meet its initial neodymium-iron-boron ambitions, as well as map a path forward where the company can continue growing in an integrated rare earths supply chain with government support.
Meanwhile, Viridis CEO Rafael Moreno says the opportunity to leverage Ionic’s trialled and proven technology and create a circular mine to magnet supply chain is a vital advantage for Viridion.
“Having personally visited Ionic’s state-of-the-art rare earth magnet recycling facility in Belfast, it’s exciting to know that the Viridion JV already has the blueprint to replicate the same pilot plant in Brazil,” Moreno says.
“The MoU with SENAI/FIEMG is another important example of support we have received from the local industry key decision makers.
“As we develop and enter more mature discussions with potential offtakers, it’s clear that there is a critical need to grow a Brazilian and South American rare earth magnet industry, to ensure security of supply for downstream users looking to decouple its dependence on the Chinese supply chain.”
Ionic Rare Earths is an emerging miner, refiner, and recycler of sustainable and traceable magnet and heavy rare earths needed to develop net-zero carbon technologies.
The company’s subsidiary Ionic Technologies International has developed processes for the separation and recovery of rare earths from mining ore concentrates and recycled permanent magnets.
Viridis Mining and Minerals is a resources explorer and developer focused on its assets in Brazil, Canada, and Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Ionic Rare Earths
