Viridis’ Rare Earths Ambitions Hinge on Finalizing Brazil’s $903M Funding Deal

Strategic Endorsement from Brazilian Development Banks

Viridis Mining and Minerals Limited, alongside its joint venture Viridion Pty Ltd, has achieved a major milestone by being selected by Brazil’s leading development institutions, BNDES and FINEP, to advance under a Joint Support Plan. This selection is part of a broader US$903 million funding initiative aimed at accelerating strategic mineral projects critical to the energy transition and decarbonisation efforts.

The endorsement reflects confidence in Viridis’ Colossus Project, a rare earth elements development poised to become a cornerstone of Brazil’s emerging supply chain outside China. The project’s advanced stage, robust economics demonstrated in a recent Pre-Feasibility Study, and integration with patented downstream refining and recycling technology licensed from Ionic Rare Earths Limited were key factors in securing this support.

Funding Package and Development Acceleration

The funding package under negotiation is expected to combine non-dilutive grants, debt financing, and potential equity participation. This multi-instrument approach aims to fast-track the Colossus Project’s transition from development to production, including its integrated downstream operations. Viridis’ recent delivery of high-purity rare earth oxides to Latin America’s only magnet manufacturer further validates its commercial pathway and technological capabilities.

Beyond the initial BRL5 billion (~US$903 million) strategic minerals pool, a second funding round of BRL3 billion (~US$542 million) targets technology development and innovation hubs, areas where Viridis and Viridion are well positioned to benefit. This aligns with Brazil’s “New Industry Brazil” policy, focusing on vertical integration and strengthening domestic industrial capacity in critical minerals.

Ongoing Project Milestones and Market Positioning

Viridis is actively advancing key project components, including environmental permitting, with a Preliminary Licence expected soon following the submission of an Environmental Impact Assessment earlier this year. Concurrently, the company is pursuing a multi-pronged financing strategy involving strategic investors and government institutions across multiple continents.

Engagements with potential offtake partners have intensified, supported by the project’s low-impurity rare earth carbonate product and compelling economics. Metallurgical optimisation and a Definitive Feasibility Study are slated to commence shortly, underpinning the next phase of development.

Managing Director Rafael Moreno highlighted the significance of this milestone, noting that the support from BNDES and FINEP positions Viridis at the forefront of establishing a fully integrated rare earths supply chain outside China. With global demand for rare earths rising amid geopolitical uncertainties, the Colossus Project stands out as a rare Western development with near-term production potential.

Implications for Brazil and the Global Rare Earths Market

Viridis’ progress exemplifies Brazil’s strategic push to reduce reliance on foreign suppliers and secure a leadership role in the global clean energy supply chain. The company’s ability to deliver high-purity rare earth oxides and its integration with downstream processing technologies position it as a critical player in this evolving landscape.

As the company moves toward finalising funding arrangements and advancing regulatory approvals, market watchers will be keen to see how Viridis leverages this momentum to capture emerging opportunities in rare earths, a sector increasingly vital to electric vehicles, renewable energy, and advanced electronics.