Ionic Rare Earths Targets US Magnet Recycling to Break China’s Supply Grip

• Progressing talks with US partners for multiple magnet recycling facilities
• Technology enables high-purity rare earth oxide recovery from magnets and swarf
• Supports US Department of Defense goal to eliminate Chinese rare earths by 2027
• Potential expansion beyond NdFeB magnets to other critical rare earth elements
• Part of broader international expansion including UK, Brazil, and Asia

Strategic Push into US Rare Earths Recycling

Ionic Rare Earths Limited (ASX – IXR) is making significant strides in establishing a domestic rare earth supply chain in the United States by advancing discussions with multiple US-based partners to develop magnet recycling plants. This initiative aligns closely with US government policies aimed at reducing reliance on Chinese rare earth imports, particularly for critical defense and advanced manufacturing applications.

The company’s patented recycling technology, developed by its UK subsidiary Ionic Technologies, enables the recovery of high-purity rare earth oxides (REOs) from both end-of-life magnets and manufacturing waste (swarf). This capability is crucial as the US Department of Defense targets complete removal of Chinese-origin rare earth materials from weapon systems by 2027, a deadline that underscores the urgency of securing sovereign supply chains.

Addressing Near-Term Supply Challenges

Recent export restrictions imposed by China on several rare earth elements have exacerbated shortages, impacting industries from automotive to defense. IonicRE’s recycling plants could provide a rapid, low-capital, and environmentally friendly solution to these supply gaps. The company is also exploring expanding its technology beyond neodymium-iron-boron (NdFeB) magnets to recycle other critical elements such as samarium, gadolinium, terbium, and dysprosium, which are increasingly restricted under China’s export controls.

Samples of high-purity magnet REOs produced at IonicRE’s Belfast demonstration plant have been dispatched to potential US partners, with site visits and technical due diligence underway. This hands-on engagement reflects growing interest from both private sector players and government stakeholders eager to bolster domestic rare earth capabilities.

Part of a Global Expansion Strategy

This US-focused push complements IonicRE’s broader international expansion, which includes joint ventures and projects in the UK, Brazil, South Korea, and Uganda. Notably, the Viridion Joint Venture with Viridis Mining and Minerals Ltd is exploring a US-based rare earth refinery, further integrating the supply chain from recycling to refining.

Executive Chairman Brett Lynch emphasises the strategic importance of this move – “The US is demanding ‘independence day’ in rare earths supply, without which both its economy and defence industry are critically exposed.” IonicRE’s technology offers a scalable, low-emission pathway to help meet this demand while the longer-term primary supply chain solutions are developed.

Navigating Geopolitical and Market Dynamics

The rare earths sector remains highly sensitive to geopolitical tensions, particularly between the US and China. While recent diplomatic efforts have introduced temporary reprieves, the fundamental supply risks persist. IonicRE’s recycling approach not only mitigates these risks but also aligns with growing environmental and sustainability expectations by reducing the carbon footprint associated with rare earth production.

As the US government tightens regulations on sourcing rare earth magnets for defense platforms, companies like IonicRE are well-positioned to become critical suppliers. The next 18 months will be pivotal as the industry races to meet the 2027 deadline for eliminating Chinese content from weapon systems.

Bottom Line?

Ionic Rare Earths is poised to become a key player in the US rare earth supply chain race, but execution risks and geopolitical shifts will test its momentum.

Questions in the middle?

• What are the timelines and scale for the proposed US magnet recycling plants?
• How will evolving US-China relations impact IonicRE’s market opportunities?
• What level of government support or incentives will IonicRE secure to accelerate US expansion?