Viridion, a joint venture between Ionic Rare Earths (ASX:IXR,OTC Pink:IXRRF) and Viridis Mining and Minerals (ASX:VMM), has signed a five year memorandum of understanding (MOU) with the owner of Lab Fab.

Lab Fab, which is owned by SENAI FIEMG Innovation and Technology Centre, is South America's first rare earth magnet laboratory. The facility is located in Brazil, which is looking to boost its rare earths presence.

The MOU will target the joint development and production of rare earth magnets at Lab Fab.

Under the agreement, the companies will look to pursue common areas of interest, including the supply of raw materials from Viridion to Lab Fab for pilot production of rare earth magnets.

“The production of magnet REOs within Brazil will enable the ramp up of magnet production capability at (Lab Fab), which is targeting a ramp up in NdFeB production to 100 tonnes per annum by the end of 2026,” said Ionic Managing Director Tim Harrison in the company's press release, shared with investors on November 6.

“We see the (joint venture) as the natural partner to help deliver this within the timeframe via recycling.”

He added that working with Lab Fab will also enable the recycling of waste streams produced as activities ramp up, allowing for the development of a secure neodymium magnet supply chain in Brazil.

Ionic and Viridis announced their intention to form the 50/50 Viridion joint venture this past April, saying that the goal was to advance rare earths separation, refining and recycling in Brazil. Their intent is to commercialise and implement separation and recycling technology developed by a subsidiary of Ionic at a separation plant in Brazil.

Ionic Executive Chair Brett Lynch said in last week's release that the company's magnet recycling technology based in Belfast, Ireland, is currently being fast tracked to commercialisation in UK and European markets.

"It is the potential replication of this technology into new markets in South America, North America and Asia that is extremely exciting for shareholders as we execute our global growth strategy, hyper-scaling this closed loop technology for the circular economy of the 21st century," he explained.

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.