Brazil’s Colossus Project Produces First Rare Earth Carbonate Outside China’s Shadow

Highlights

• Viridis Mining produced the first batch of Mixed Rare Earth Carbonate from ionic-clay ore at its new demonstration facility in Poços de Caldas, Brazil.
• The Rare Earth Research and Processing Centre cost ~$5M, processes 100 kg of ore per hour, and is one of the largest ionic-clay rare earth demo facilities outside China.
• The Colossus project's pre-feasibility study projects $5.6B lifetime revenue, a $900M after-tax NPV, and a 34% IRR with commercial production targeted for 2028.
• Ionic-clay deposits are the world's primary source of heavy rare earths like dysprosium and terbium, critical for EV motors, wind turbines, and defense applications.
• Significant downstream hurdles remain, including rare earth separation, metallization, and customer qualification before Colossus can fully compete in global supply chains.

A Brazilian rare earth project just crossed one of the most important milestones in the global race to diversify supply chains away from China. Australian developer Viridis Mining & Minerals (opens in a new tab) announced that its Brazilian subsidiary has successfully produced the first batch of Mixed Rare Earth Carbonate (MREC) from ionic-clay ore at its newly inaugurated Rare Earth Research and Processing Centre (CPTR) in Poços de Caldas, Minas Gerais. The milestone comes as the company prepares to complete its Definitive Feasibility Study (DFS) by the end of June and accelerate negotiations with potential offtake partners.

More Than a Pilot Plant

The company describes the CPTR as one of the largest and most sophisticated ionic-clay rare earth demonstration facilities outside China. Built for approximately US$5 million, the facility occupies a 5,000-square-meter site and was intentionally designed as a demonstration-scale operation rather than a traditional laboratory pilot plant. Management believes the approach significantly reduces scale-up risk while providing operational data necessary for future commercial development. The plant processes approximately 100 kilograms of ore per hour and can produce up to 2,920 kilograms of mixed rare earth carbonate annually.

Why This Matters

The achievement is noteworthy because ionic-clay deposits represent the world's most important source of heavy rare earth elements such as dysprosium and terbium—critical materials used in advanced permanent magnets for electric vehicles, robotics, wind turbines, aerospace systems, and military applications. Viridis claims it now joins a small group of Western developers capable of continuously processing ionic-clay ore into a marketable rare earth product containing neodymium, praseodymium, dysprosium, terbium, and samarium.

The Road to Commercial Production

The demonstration facility will now support:

• Final DFS validation
• Offtake qualification sample production
• Equipment testing and procurement beginning in Q3 2026
• Workforce training programs
• Environmental permitting support
• Installation of a future magnet recycling demonstration unit through the Viridion joint venture, targeted for 2027.

Commercial operations remain targeted for 2028.

The Economics—and the Caveat

According to the project's 2025 pre-feasibility study, Colossus would require approximately $286 million in capital investment and could produce 9,500 tonnes of total rare earth oxides annually, with roughly 36% represented by high-value NdPr material. Mine life is estimated at 20 years, generating projected lifetime revenue of $5.6 billion, an after-tax NPV of $900 million, and a 34% IRR. The projected all-in sustaining cost is only $9.30 per kilogram TREO.

Yet investors should remain cautious. Producing mixed rare earth carbonate is a major technical achievement, but it remains an upstream product. The true bottlenecks still lie further downstream in rare earth separation, metallization, alloy production, magnet manufacturing, and customer qualification.

Nevertheless, among Western rare earth projects, this represents, arguably, one of the most meaningful de-risking events reported in 2026 and offers a rare glimpse of a potential heavy rare earth supply chain emerging outside China and Myanmar.

Profile

Viridis Mining & Minerals is an Australian-listed rare earth developer focused on its flagship Colossus Ionic Clay Project in Brazil's Poços de Caldas alkaline complex. The company claims to control the world's largest IAC rare earth resource outside China, with 493 million tonnes of resource and a strong concentration of magnet rare earth elements including neodymium, praseodymium, dysprosium, and terbium. What distinguishes Viridis from many rare earth juniors is its attempt to build an integrated supply chain rather than simply develop a mine.

The company has advanced a demonstration-scale processing plant capable of producing mixed rare earth carbonate, secured key environmental approvals, attracted support from Brazilian strategic mineral funds and export credit agencies, and established a downstream joint venture focused on rare earth separation, refining, and magnet recycling. Management targets a final investment decision in 2026 and commercial production in 2028, positioning Colossus as a potential low-cost supplier of both light and heavy rare earths to Western markets seeking alternatives to Chinese supply chains. While many of the company's claims remain subject to execution risk, permitting, financing, and market conditions, Viridis has emerged as one of the more advanced and vertically ambitious rare earth development stories outside China.

Source Disclaimer: This news item incorporates information distributed through the China Rare Earth Industry Association, a state-affiliated Chinese industry organization, together with corporate statements from Viridis Mining & Minerals. Investors should independently verify all technical, operational, and economic claims through company filings, regulatory disclosures, and independent third-party sources.