Belfast Rare Earth Facility Targets 400 tpa Production, $1.7B EBITDA Over 20 Years

Belfast Facility Poised to Lead Western Magnet REO Supply

Ionic Rare Earths Limited (ASX: IXR) has unveiled a compelling feasibility study for its 100%-owned Ionic Technologies subsidiary’s rare earth oxide (REO) recycling facility in Belfast, UK. The study highlights a post-tax net present value (NPV) of US$502 million and an internal rate of return (IRR) of 43.6%, underscoring the project's strong financial viability. With a planned throughput of 1,200 tonnes per annum and a production capacity of 400 tonnes per annum of separated magnet REOs, the facility aims to deliver sovereign magnet REO supply to Western markets by late 2026.

This plant will recycle pre-consumer magnet scrap and end-of-life magnets, producing high-purity rare earth oxides such as didymium oxide, dysprosium oxide, and terbium oxide at grades exceeding 99.5%. The facility’s modular design allows for scale-up flexibility, positioning Ionic Technologies as a first mover in the Western magnet REO recycling space, a critical step in reducing reliance on China-dominated supply chains.

Strategic Funding and Government Support

Following the positive feasibility outcomes, Ionic Technologies has lodged an application for a substantial capital grant from the UK Government’s Automotive Transformation Fund, administered by the Advanced Propulsion Centre. This grant could significantly reduce the equity required to finance the project, reinforcing the UK’s ambition to establish a sovereign magnet REO capability. The outcome of this application is expected in the first quarter of 2025.

Additionally, the company has secured over A$2.46 million in UK government grants to advance rare earth magnet recycling partnerships, including collaborations with Less Common Metals and Vacuumschmelze. These partnerships aim to close the loop on rare earth magnet supply chains, supporting the UK’s net-zero transition and advanced manufacturing sectors.

Brazilian Joint Venture Accelerates Rare Earth Refining

In Brazil, Ionic Rare Earths’ 50% owned Viridion Joint Venture with Viridis Mining and Minerals Limited (ASX: VMM) is gaining momentum. The Minas Gerais state investment promotion agency, Invest Minas, has endorsed the replication of Ionic’s UK magnet recycling technology locally, promising substantially lower operating costs. The JV is in advanced talks to secure pilot plant sites near Viridis’ existing Colossus Project operations.

Viridion also signed a five-year Memorandum of Understanding with SENAI FIEMG Innovation and Technology Centre, home to South America’s first rare earth magnet laboratory, Lab Fab. This collaboration aims to develop and produce rare earth magnets domestically, supporting Brazil’s growing wind energy and electric vehicle markets.

Progress at Makuutu Heavy Rare Earths Project in Uganda

Ionic Rare Earths continues to advance its 60%-owned Makuutu Heavy Rare Earths Project in Uganda, one of the world’s largest ionic adsorption clay deposits. The company is engaged in ongoing financing discussions with the Mineral Security Partnership to support project development and integration into Western supply chains. Recent regulatory approvals and tenement renewals have secured the project’s tenure, while demonstration plant outputs are being analysed to underpin commercial offtake discussions.

Corporate and Financial Position

During the quarter, Ionic Rare Earths completed a $1.65 million placement and an oversubscribed Share Purchase Plan raising approximately $766,000, reflecting strong shareholder support. The company also received $613,000 in R&D tax rebates from the Australian Tax Office, bolstering its funding position. Cost reduction initiatives are ongoing to extend the company’s cash runway, currently estimated at just under two quarters, with active engagement underway to secure further development funding through strategic partnerships and potential placements.

Executive changes included the appointment of Warren Tregurtha as acting CFO and the resignation of Non-Executive Director Nitin Tyagi, who left to pursue a role at Amazon Web Services. The company continues to strengthen its leadership team to support its ambitious growth plans.

Outlook and Market Positioning

Looking ahead, Ionic Rare Earths aims to finalise permitting and secure funding to reach a Final Investment Decision for the Belfast facility in the first half of 2025, targeting first production by late 2026. The company is also exploring opportunities to scale its recycling technology across key markets including the US, Europe, Asia, and Brazil, leveraging its proven process and government backing.

With global demand for rare earth elements intensifying amid the energy transition and advanced manufacturing growth, Ionic Rare Earths is positioning itself as a critical supplier of sustainable, traceable, and sovereign rare earth products. Its integrated strategy encompassing recycling, refining, and mining across multiple continents offers a diversified pathway to capture value in this strategically vital sector.