Several ASX-listed companies have secured a foothold in Brazil’s million-dollar-plus push to build strategic mineral supply chains, with their projects selected for funding under programmes backed by the country’s national development bank BNDES and innovation agency Finep.

Ionic Rare Earths, Viridis Mining and Minerals and Meteoric Resources are among the participants advancing projects in Brazil that have been shortlisted under public calls for initiatives aimed at boosting the supply of minerals critical to the energy transition and decarbonisation of the economy.

Among the successful applicants is Viridion, the 50:50 joint venture (JV) between ASX-listed firms Ionic Rare Earths and Viridis, which will receive funding to advance rare earths refining and magnet recycling facilities. The Viridis-owned Colossus project, which will supply feedstock to the JV, was also selected for support.

“.. . [This] represents an enormous vote of confidence in Viridion and the future of our Brazilian downstream rare earth business,” said IonicRE MD Tim Harrison in a statement to shareholders on Friday.

“We are now progressing talks aimed at finalising the funding package and look forward to delivering on Brazil’s ambitions to become a leader in this key industry in the twenty-first century.”

Viridis CEO Rafael Moreno welcomed the recognition for Colossus. “This recognition affirms not only the technical and commercial strength of the Colossus project and our downstream capabilities, but also highlights Viridis’ growing role in the global rare earths supply chain,” he said.

“As global demand for rare earths intensifies amid increasing supply chain uncertainty, Colossus stands out for its ability to deliver compelling project economics, even at today’s subdued prices.”

Moreno said Colossus was "one of the few projects in the Western world with a realistic chance of getting into production".

Also included in the programme is ASX-listed Meteoric Resources, with its Caldeira rare earths project in Minas Gerais. Meteoric is seeking support for a pilot plant, downstream rare earth element separation, and debottlenecking work.

“We are very pleased to be part of this important initiative to develop and industrialise production of strategic minerals in Brazil,” said MD Stuart Gale.

“Finep, BNDES and more broadly the government of Brazil are to be congratulated for establishing and funding an initiative which encourages the development of new technologies and assists in the development of Brazilian industry.”

Meteoric’s proposal complements its memorandum of understanding with SENAI Regional Development and the ITR permanent magnet facility, forming part of the MAGBRAS initiative to establish an end-to-end “mine to magnet” value chain in Brazil.

In total, BNDES and Finep shortlisted 56 business plans under its public call for projects, spanning rare earths, lithium, graphite, copper and silicon – minerals vital to green technologies such as batteries, electric motors, and solar panels. Of these, ten projects focus on rare earths.

The selected projects, with a combined estimated value of R$45.8-billion, will now proceed to the next phase involving the development of joint support plans. BNDES and Finep will recommend funding mechanisms, including credit, subsidies and non-reimbursable support.

The programme, launched in two tranches, is one of Latin America’s most significant coordinated funding efforts for critical minerals. The R$5-billion (about $900-million) call, announced in January 2025, targets business plans aimed at developing industrial capacity in critical minerals essential for the energy transition and decarbonisation. A second tranche of R$3-billion ($540-million), unveiled in February, is focused on bolstering research, development and innovation (RDI) capacity. 

A total of 124 submissions were made, with funding requests totalling R$85.2-billion, reflecting growing global interest in Brazil’s mineral value chain.