Ionic Rare Earths Limited has signed a non-binding MOU with South Korea's DNA Link to collaborate on rare earth magnet recycling and supply, marking a strategic push into Asia and the US markets.
- Non-binding MOU signed between Ionic Rare Earths and DNA Link for rare earth magnet recycling
- Collaboration targets South Korea's magnet market and US permanent magnet capacity
- Ionic Technologies' Belfast recycling plant to supply recycled rare earth oxides (REOs)
- Partnership aims to build sovereign, sustainable ex-China rare earth supply chains
- Alignment with growing demand from electric vehicles and clean technology sectors
Strategic Expansion into Asia and Beyond
Ionic Rare Earths Limited (ASX: IXR) has taken a significant step in its international growth strategy by signing a non-binding Memorandum of Understanding (MOU) with South Korea's DNA Link (KOSDAQ: 127120). This collaboration focuses on recycling rare earth permanent magnets and supplying magnet rare earth oxides (REOs), aiming to establish a secure and sustainable supply chain in South Korea, the world's third-largest magnet market.
The partnership leverages Ionic Technologies’ patented hydrometallurgical recycling process developed in Belfast, UK, which can recover high-purity individual rare earth oxides such as neodymium, praseodymium, dysprosium, and terbium. These materials are critical for manufacturing NdFeB permanent magnets, essential components in electric vehicles (EVs), robotics, and advanced air mobility sectors.
Building Sovereign Supply Chains Amid Global Demand
South Korea imports over 5,400 tonnes of permanent magnets annually, predominantly from China. The MOU outlines cooperation on recycling swarf from DNA Link’s upcoming magnet production plant in Yesan, South Korea, with potential processing at Ionic Technologies’ Belfast facility. This symbiotic relationship aims to underpin both feedstock supply and product offtake, supporting DNA Link’s target to commence magnet production in late 2025 and Ionic’s Belfast recycling plant expected to start operations in late 2026.
Beyond South Korea, the agreement contemplates joint ventures and collaboration to establish permanent magnet capacity in the United States, aligning with geopolitical shifts such as the US ban on Chinese rare earth oxides in defense applications starting 2027. The partnership also seeks to engage with the South Korean government and other international stakeholders to foster sovereign rare earth capabilities, reducing reliance on China.
Technological Edge and Market Implications
Ionic Technologies’ recycling technology offers a first-mover advantage by enabling near-complete extraction of rare earth elements from mixed magnet waste streams, independent of feedstock variability. This flexibility is crucial for scaling recycling operations and meeting stringent purity requirements exceeding 99.5% REO grades.
Tim Harrison, Managing Director of Ionic Rare Earths, highlighted the strategic importance of this collaboration in expanding the company’s footprint into Asia and the US, while reinforcing the commercial viability of their Belfast recycling plant. DNA Link’s CEO, Jun Young Lee, echoed this sentiment, emphasizing the shared vision of building a full rare earth supply chain within Western and allied countries to support clean technology growth.
The partnership aligns with broader market trends, as forecasts predict an 8.7% CAGR in NdFeB magnet demand through 2040, driven by EVs, robotics, and advanced mobility. Regulatory frameworks like the EU’s Critical Raw Materials Act further incentivize recycling and domestic processing, underscoring the timeliness of IonicRE and DNA Link’s collaboration.
Looking Ahead
While the MOU is non-binding, it sets a foundation for definitive agreements on swarf recycling, REO offtake, joint ventures, and supply chain development. Ionic Rare Earths’ broader strategy includes complementary projects such as the Makuutu Rare Earths Project in Uganda and a joint venture refinery and recycling facility in Brazil, positioning the company as a global player in sustainable rare earth supply.
This alliance with DNA Link not only advances IonicRE’s international ambitions but also contributes to the critical global effort to diversify and secure rare earth supply chains essential for the clean energy transition.
Bottom Line?
Ionic Rare Earths’ partnership with DNA Link signals a pivotal move to secure sustainable rare earth supply chains amid rising global demand and geopolitical shifts.
Questions in the middle?
- Will the non-binding MOU evolve into formal joint ventures or binding supply agreements?
- How will government incentives in South Korea and the US influence the partnership’s development?
- What are the timelines and scale-up plans for Ionic Technologies’ Belfast recycling plant relative to DNA Link’s production?