Iondrive’s $4.8M Pilot Plant Backed by $3.9M Government Funding
Iondrive Limited has won a $3.9 million government grant to advance its innovative urban mining technology, accelerating the construction of a pilot plant focused on critical minerals recovery from lithium-ion batteries.
- Awarded $3.9 million non-dilutive grant under Industry Growth Program
- Funding covers 50% of pilot plant construction and operational costs
- Pilot plant to recover lithium, nickel, cobalt from battery black mass
- Construction approved with $4.8 million budget, commissioning starts December 2025
- Grant validates technology and supports scale-up towards commercial facility
Government Boosts Urban Mining Innovation
Iondrive Limited (ASX, ION) has taken a significant step forward in commercialising its cutting-edge Deep Eutectic Solvent (DES) technology, securing a $3.9 million grant from the Australian Government’s Industry Growth Program. This non-dilutive funding will cover half of the costs associated with building and operating a pilot plant designed to recover critical minerals from lithium-ion battery waste, a key component in the global push for sustainable resource management.
Pilot Plant Construction and Strategic Importance
The pilot plant, with an estimated total cost of $4.8 million, has received board approval following the completion of Front-End Engineering Design (FEED). Construction is set to begin imminently, with phased commissioning expected to start in December 2025 and conclude by early 2026. This facility will serve as a real-world proving ground for Iondrive’s DES process, which offers a more environmentally friendly alternative to traditional metal extraction methods by operating at lower temperatures and avoiding harsh chemicals.
Technology Validation and Market Potential
The grant award came after a rigorous and highly competitive national assessment, underscoring the technology’s commercial promise and alignment with Australia’s strategic priorities in battery recycling and critical minerals sovereignty. Iondrive’s DES technology is notable for its ability to selectively extract valuable metals such as lithium, nickel, and cobalt from battery black mass, as well as its potential applications in broader urban mining sectors including electronic waste and mining residues.
Financial Position and Future Outlook
With a strong cash position of $5.9 million as of June 2025 and anticipated R&D tax incentives exceeding $1 million, Iondrive is well placed to fund its share of the pilot plant costs. CEO Dr Ebbe Dommisse highlighted the grant as a pivotal endorsement of the company’s technology roadmap, emphasizing the importance of government support in accelerating commercialisation and enabling future global expansion of their sustainable resource recovery solutions.
Towards a Circular Economy
The pilot plant will not only demonstrate the technical viability of Iondrive’s process under commercial conditions but also contribute to Australia’s growing capabilities in clean technology and circular economy initiatives. By enabling efficient recovery of critical minerals domestically, Iondrive’s approach could reduce reliance on traditional mining and smelting, lowering environmental impact and supporting decarbonisation efforts.
Bottom Line?
Iondrive’s government-backed pilot plant marks a crucial milestone in scaling sustainable battery recycling technology with global ambitions.
Questions in the middle?
- How will the pilot plant’s performance influence timelines for a full-scale commercial facility?
- What partnerships or offtake agreements might emerge as the technology proves itself?
- How will Iondrive navigate potential technical or regulatory challenges during scale-up?
