Ionic Rare Earths Ltd (ASX:IXR, OTC:IXRRF) has inked an agreement to form a 50:50 joint venture (JV) with Viridis Mining and Minerals Ltd to advance a rare earth separation business in one of the fastest developing rare earth regions in the world – Brazil.
IXR says this agreement will accelerate its ambition to build an integrated rare earth oxide (REO) supply chain in Brazil, including separation, refining and recycling of rare earths.
The JV plans to construct a refinery and magnet recycling facility in Brazil utilising Ionic Technologies’ separation technology, which has already been tested at the company's Belfast magnet recycling Demonstration Plant.
Read: Ionic Rare Earths begins full scale magnet rare earth oxide production at Belfast demonstration plant
Global participant in crucial supply chain
“This JV agreement cements IonicRE’s advancement over the past 24 months in becoming a significant global participant in the crucial supply chain for rare earths for the western world and follows our successful continuous magnet REO production at Belfast and Demonstration Plant MREC product from Makuutu,” Ionic Rare Earths executive chair Brett Lynch said.
“Secure REO supply is critical for a broad range of modern technologies that we depend upon every day including the huge demand from the energy transition evolution underway, specifically electric motors, wind turbines, HVAC and robotics for advanced manufacturing and defence.
“With IonicRE joining forces with Viridis, we are able to share assets that allow us to leap forward in terms of global footprint and operation.”
Viridis holds the Colossus Rare Earth Project in Poços de Caldas, Brazil, a high-grade ionic adsorption clay (IAC) deposit where maiden drilling intersected 46 metres at 3,285 parts per million (ppm) total rare earth oxide (TREO) and 24 metres at 4,573 ppm TREO.
The REOs at Colossus have also demonstrated strong metallurgical extraction results of about 80% neodymium-praseodymium and about 66% dysprosium-terbium.
At forefront of alternative supply chain
“We can combine the significant scale and high-grade IAC from Colossus, with skilled staff, equipment, technology and also leverage support from Brazilian authorities, and position IonicRE right at the forefront of this alternative global rare earth chain supply dominated by China,” Lynch continued.
“It is critical that the western world established long term, secure, resilient supply and IonicRE will be a leading player in that critical supply chain.”
Under the JV, Viridis will supply mixed rare earth carbonate (MREC) processed from the Colossus Project on standard market terms.
IonicRE will supply separation technology expertise for the JV, ensuring a closed-loop process for the production and supply of rare earth products to market.
The company is also engaging in ongoing discussions with Brazilian government agencies for an accelerated approvals process.
IXR is targeting the completion of a scoping study for the refinery and recycling project by the end of 2024.