How Ionic Technologies Is Leading the UK’s £11M Rare Earth Magnet Supply Chain Breakthrough

A Strategic Win for UK EV Supply Chains

Ionic Rare Earths Limited’s wholly owned subsidiary, Ionic Technologies, has secured a significant £11 million (A$22.6 million) funding boost from the UK Government via the Advanced Propulsion Centre UK (APC). This funding underpins the three-year CirculaREEconomy project, a first-of-its-kind initiative to establish a sovereign and sustainable UK-based rare earth permanent magnet (REPM) supply chain. The project is a direct response to growing concerns over supply chain vulnerabilities, particularly following China’s recent export restrictions on critical rare earth elements.

The CirculaREEconomy consortium brings together a powerful lineup of industry leaders, including automotive giants Ford Technologies Limited and Bentley Motors Limited, bus manufacturer Wrightbus, rare earth metal specialists Less Common Metals (LCM), recycling powerhouse European Metals Recycling (EMR), and scientific expertise from the British Geological Survey (BGS). German magnet manufacturers Vacuumschmelze and GKN Powder Metallurgy will produce magnets to exacting OEM specifications, ensuring high-quality components for electric motors.

Closing the Loop with Circular Supply Chains

At the heart of the project is Ionic Technologies’ proprietary hydrometallurgical recycling technology, which enables the recovery of high-purity (99.5%) separated rare earth oxides (REOs) from end-of-life magnets and waste materials. This long-loop recycling approach aims to create a closed-loop supply chain that reduces reliance on primary mining and imports, particularly from China, which currently dominates the rare earths market.

The project will see Ionic Technologies process recycled materials at its Belfast demonstration plant, with partners EMR and LCM optimizing material recovery and metal alloy production. The recycled REOs will then be used by magnet manufacturers to produce permanent magnets for electric vehicle motors, which will be tested and validated by OEMs including Ford, Bentley, and Wrightbus. This integrated approach promises not only supply security but also significant environmental benefits, with studies indicating up to 61% lower carbon emissions compared to traditional mining-based supply chains.

Aligning with UK Government’s DRIVE35 Ambitions

The CirculaREEconomy project aligns closely with the UK Government’s DRIVE35 program, which aims to accelerate the transition to low-carbon propulsion technologies and strengthen the UK automotive sector’s competitiveness. With an anticipated demand for over 2,000 tonnes of magnets annually in the UK alone over the next decade, the project addresses a critical bottleneck in the electric drivetrain supply chain.

APC CEO Ian Constance highlighted the importance of such collaborations in driving innovation and unlocking investment in manufacturing capabilities. Ionic Technologies’ Managing Director Tim Harrison emphasized the strategic importance of developing an ex-China supply chain, noting the risks posed by monopolistic dependencies and the benefits of government-backed initiatives to foster sovereign capacity.

Next Steps and Market Implications

The project officially kicks off on 1 August 2025, with ongoing discussions around capital grant funding to support the development of a full-scale commercial plant in Belfast Harbour. The appointment of a grant delivery officer by the APC underscores the UK Government’s commitment to this strategically vital industry, which promises to create skilled jobs and regional economic growth.

For Ionic Rare Earths, this funding and consortium leadership mark a pivotal step in scaling its global magnet recycling business, with plans to expand operations into the US and Brazil. The initiative not only enhances the UK’s industrial autonomy in critical materials but also positions Ionic Technologies as a key enabler of sustainable, circular supply chains in the rapidly evolving electric vehicle market.