Ionic Rare Earths Limited announced that its Brazilian joint venture, Viridion, has been chosen by Brazil’s BNDES and FINEP to secure substantial government funding aimed at advancing rare earth recycling and refining operations. The financial support, stemming from two public calls—one for approximately R$5 billion (about US$900 million) and another for R$3 billion (about US$540 million)—will finance pilot plant development, metallurgical testing, engineering feasibility studies, and capacity building within Brazil’s rapidly expanding strategic minerals sector. The funding decision comes on the back of Viridion’s recent achievement of delivering high-purity rare earth oxides, including Neodymium, Praseodymium, Dysprosium, and Terbium, to CIT SENAI in Minas Gerais. This delivery represents a significant milestone as it marks the nation’s first supply of locally recycled rare earth oxide feedstock produced from Brazilian end-of-life magnets. The initiative is part of a broader strategy to create a secure, sustainable, and ex-China supply chain that can support advanced manufacturing, electric vehicles, and renewable energy projects in Brazil—the world’s seventh largest wind energy market experiencing rapid growth. The company’s state-of-the-art technology, developed by its UK subsidiary, Ionic Technologies, has demonstrated the capacity to recover high-value rare earth oxides from lower quality spent magnets and waste with a purity exceeding 99.9%. The joint venture between Ionic Rare Earths Limited and Viridis Mining and Minerals is being positioned to lead South America’s transition to a fully integrated and circular supply chain for critical minerals. The support from Brazilian governmental agencies, alongside favourable local economic policies and lower operational costs compared to other markets, underlines the potential for rapid expansion and technological innovation in an industry under global pressure due to China’s export controls. Market sentiment appears mixed. On the bullish side, the government selection acts as a strong endorsement of Viridion’s technology and business model. The promising results from the pilot phase, coupled with significant funding and the strategic importance of developing a secure, diversified rare earth supply chain, bode well for long-term growth in an industry essential to modern manufacturing and clean energy initiatives. Conversely, bearish concerns remain regarding the inherent risks in navigating regulatory negotiations and finalizing funding details, as well as the challenges of scaling up new technology in a competitive global market. Despite these uncertainties, the framework established by Ionic Rare Earths Limited and its partners positions them to potentially reshape the rare earths landscape in Brazil and beyond.