With the emergence of LabFabITR as a new government-supported magnet factory in southeastern Brazil, South America is joining other continents that are building their capability to manufacture magnets domestically. Development of new rare earth mines and building a magnet recycling industry are related aspects of the grand plan, centered in the minerals-rich state of Minas Gerais.
Key commercial players involved as business and technology partners in the venture include Ionic Rare Earths of Australia with its recycling subsidiary Ionic Technologies in Belfast and its Viridion joint venture in Brazil; also Meteoric Resources and Brazilian Critical Minerals which are both Australian-based.
LabFab is targeting a ramp up in magnet production to 100 tons per year by the end of 2026 and to double that capacity in about three years. It also plans to recycle magnet waste streams, all toward enabling the development of an insulated and secure NdFeB supply chain in Brazil that can support present demand and significant growth in advanced manufacturing peering on the horizon.
Conceived several years ago as the first laboratory-factory for rare earth alloys and magnets in the southern hemisphere, the plant is located in Lagoa Santa in the mineral-rich state of Minas Gerais, about 300 miles north of Rio de Janeiro in southeastern Brazil. It began as an initiative of the government of Minas Gerais and the Minas Gerais Development Company (Codemge). In December 2023, the enterprise was purchased by the Federation of Industries of the State of Minas Gerais (Fiemg). It is operated by the Senai Innovation & Technology Center (CIT), enabling synergy with the various laboratories and activities already established in the Center’s institutes in the areas of chemistry, mineral processing, metallurgy and special alloys, and environmental technology.
Plans for LabFabITR are to produce neodymium-iron-boron (NdFeB) magnets, also to develop customized solutions for the market by serving unique batches, prototypes or new products. With the participation of the manufacturing departments and research laboratories, it expects to be able to produce magnets with a variety of grades, sizes, shapes and coatings. The facility brings together an industrial plant to meet market applications, a research and development environment with a laboratory structure and a specialized team.
Building the magnetics industry in Brazil
Inherent in its mission is to stimulate the growth of a rare earths magnet industry in Brazil to serve the growing demand for magnetic products and technology there. Windpower turbines and electric vehicles are the big drivers for magnet demand in the world’s 10th largest economy. Its wind energy market ranks as the seventh largest worldwide and is growing robustly.
Now the country is verging on a surge in electric vehicle manufacturing, largely driven by investments from Chinese automakers and government policies aimed at stimulating local production. BYD and GWM are leading the charge, establishing production bases in the country and investing billions of dollars to expand local EV manufacturing capabilities. BYD has started constructing a large production base in Bahia, northeast Brazil, with plans to begin production in late 2024 to early 2025 and expected to have an annual capacity of 150,000 vehicles in the first phase. GWM recently acquired a former Mercedes-Benz plant near Sao Paulo where it plans to invest $2 billion in the country by 2032, and begin the production of hybrid and electric vehicles this year.
Minas Gerais state is currently experiencing a rare earths boom with several projects targeting the production of both light and heavy rare earths. Several companies are actively exploring and developing rare earth deposits in the state, with the potential to establish Brazil as a significant global supplier while reducing reliance on China.
Highlighting its commitment to the sector, in January 2025 the Brazilian government announced $815 million in financing for projects aimed at boosting the development of strategic minerals, including rare earths. The funding aims to stimulate investments in production capacity and R&D for the transformation of strategic minerals including rare earths. Further backing comes from recent pledges by government funding authorities to allocate $1.4 billion in financing to support mining companies focused on developing strategic minerals and building a rare earths industry from mining to magnets.
Viridion and Ionic Rare Earths
In May, Viridion made the first delivery of recycled magnet rare earth oxide feedstock to the plant to be used in metal, alloy and magnet production at demonstration scale. Viridion is a joint venture between two Australian companies, Ionic Rare Earths of Melbourne, and Viridis Mining & Minerals which is headquartered in Perth and holds rare earths concessions in Brazil, notably the Colossus Project.
The shipment included neodymium (Nd), praseodymium (Pr), dysprosium (Dy), and terbium (Tb). The end-of-life magnets were sourced from Brazil and recycled by Ionic Technologies at its facility in Belfast, UK. The magnets are primarily sourced from decommissioned MRI machines and wind turbine generators, containing high-performance permanent magnets rich in Nd, Pr, Dy and Tb. The feedstock was hydrometallurgically recycled using Ionic Technologies’ patented long-loop recycling technology to produce high purity separated REOs.
“We welcome this development which represents a major milestone for both IonicRE and our Viridion JV, as we progress our global roll out, establishing domestic capability in Brazil and leveraging our technology to accelerate new rare earth supply chains based on recycling,” commented Tim Harrison, managing director of IonicRE which is headquartered in Melbourne.
“IonicRE is building a global industrial business and Brazil is an important piece of this puzzle, being a major advanced manufacturer at the heart of the South American economy. We look forward to advancing our partnership with Viridis, which has the potential to be a significant disruptor to current monopolized global supply.”
In December 2024, Viridion received support from the Minas Gerais investment promotion agency, Invest Minas, for IonicRE to replicate its UK magnet recycling technology in the Brazilian state, aiming to support the ramp up of magnet production capability at LabFab. Talks are continuing with the Minas Gerais authorities on the location of pilot plants for both a potential REO refinery and magnet recycling facilities, near Viridis’ Colossus Project operations in Minas Gerais.
“Brazil is a key part of our global expansion strategy, with the potential to replicate Ionic Technologies’ magnet recycling technology in markets including the UK, Europe, Asia and both North and South America,” said IonicRE Executive Chairman Brett Lynch. “We are pleased with the progress made by Viridion and look forward to securing facilities for planned pilot plants in Minas Gerais, working closely with our Brazilian partners.”
The recycled REOs will be used for initial lab-scale experiments to evaluate if the REE oxides can be successfully transformed into alloys. Small quantities of magnets will then be produced with a focus on assessing the quality of the magnet production specifications and verifying whether the rare earth properties meet the performance standards required for high-end applications.
José Luciano Pereira, SENAI ITR’s Innovation & Technology Manager, said that he expects all tests with the recycled oxides to be completed during the second half of calendar 2025: “We will have a technical assessment of the viability of this process. It is an important step and, without a doubt, a milestone for all involved in building a national rare earths supply chain based on innovation and sustainability.”
Viridion Joint Venture
Formed in 2024, the 50/50 joint venure between Viridis and Ionic Rare Earths aims to commercialize Ionic’s separation and recycling technology at a separation plant in Brazil, aiming to produce a full suite of refined magnet REOs in South America using concentrates and carbonates from Colossus Project rare earths site in Brazil and from domestic magnet recycling.
In August of 2023, Viridis acquired the rare earth element (REE) rights to the Colossus ionic adsorption clay project in Minas Gerais. Despite their lower grades, IAC deposits have the advantage of simple and cheap processing in comparison to hard rock peers. A straightforward ammonia sulphate wash can generate a high-value mixed rare earth carbonate which can be sent straight to refiners. Mineralization occurs at surface, requiring no drilling and blasting.
Meteoric and Brazilian Critical Minerals
Seeking to build its feedstock and technology partnerships, the government of Minas Gerais, as owner of LabFab, has also executed memorandum of understandings with other companies involved in rare earths resources in Brazil including Meteoric and Brazilian Critical Minerals, both Australian-based.
Last June, in executing its agreement, Meteoric’s executive chairman Dr Andrew Tunks commented, “This is an important partnership for Meteoric as we look to potential off-takers for our Caldeira Project as it targets first production in 2027. We look forward to working closely with the State of Minas Gerais and LabFab as they aim to grow Brazil and Latin America’s home-grown rare earth magnet industry, lessening the reliance on foreign imports.”
The Caldeira Project is also located in Minas Gerais. Meteoric is targeting an investment decision late this year for the project, which aims to produce both light and heavy rare earths. As previously reported in Magnetics Magazine, Meteoric has also signed offtake proposals from the project with Neo Performance Materials and Ucore to supply new plants of theirs outside of Brazil.
Brazilian Critical Minerals is a minerals explorer focused on exploring Brazil and has several properties with rare earths resources.
For more info, see www.labfabitr.citsenaiitr.com.br, www.ionicre.com, www.viridismining.com.au, www.meteoric.com.au, www.braziliancriticalminerals.com.
