How Ionic Rare Earths Is Building a £11M UK Rare Earths Supply Chain
Ionic Rare Earths advances its global rare earths strategy with significant UK government funding, increased heavy rare earth oxide production, and a $15.6 million capital raise backed by a strategic US investor.
- £11 million UK government funding for CirculaREEconomy magnet recycling project
- Increased production of critical heavy rare earth oxides dysprosium and terbium
- First revenue from sales and tolling of dysprosium oxide to Western customers
- Viridion JV in Brazil secures land and advances federal funding evaluation
- Completed $15.6 million capital raise with strategic investment from Argentem Creek Partners
Global Expansion and Strategic Funding
Ionic Rare Earths Limited (ASX, IXR) has reported substantial progress in its global rare earths operations for the quarter ending 30 September 2025. Central to this advancement is the £11 million (A$22.6 million) UK government grant awarded to the CirculaREEconomy consortium, led by Ionic Technologies, IonicRE’s wholly owned UK subsidiary. This funding supports the development of a sustainable rare earth permanent magnet supply chain in the UK, a critical step in reducing reliance on China-dominated markets.
The consortium includes major industry players such as Ford, Bentley, and Wrightbus, alongside technology and recycling partners, aiming to establish a circular economy for rare earth magnets. Ionic Technologies will leverage its patented hydrometallurgical recycling process to produce high-purity rare earth oxides (REOs), with a focus on heavy rare earth elements essential for electric vehicles and defence applications.
Production Ramp-Up and Market Response
Responding to urgent supply requests from Western customers amid escalating Chinese export restrictions, Ionic Technologies has increased production of dysprosium oxide and terbium oxide at its Belfast demonstration plant. These heavy rare earth oxides are vital for high-performance permanent magnets used in renewable energy and defence sectors. The company has already recorded its first revenue from both tolling services and direct sales of dysprosium oxide, signaling early commercial traction.
China’s tightening of export controls, including new licensing requirements for dual-use items effective December 2025, has intensified global efforts to diversify rare earth supply chains. IonicRE’s technology and production capabilities position it well to capture growing demand from the US, Europe, and Asia.
Advancing Projects in Brazil and Uganda
In Brazil, the Viridion joint venture (50% IonicRE) has secured land in Poços de Caldas, Minas Gerais, for the Centre for Rare Earths Innovation, Technology and Recycling (CRITR). This facility will be South America’s first demonstration-scale rare earth refining and magnet recycling hub, aligning with Brazil’s strategic push to develop sovereign rare earth capabilities. Viridion has also progressed to the next phase of evaluation for significant federal funding, potentially accelerating project development.
Meanwhile, the Makuutu Heavy Rare Earths Project in Uganda (60% IonicRE) remains shovel-ready, with ongoing discussions involving potential investors, offtakers, and members of the Minerals Security Partnership. The project’s rich heavy rare earth element profile offers a strategic alternative to Chinese supply, especially as Beijing tightens export controls. Makuutu’s near-term development potential is underscored by its existing mining licence and infrastructure advantages.
Corporate Developments and Capital Raising
On the corporate front, IonicRE successfully completed a renounceable rights issue and placement, raising $15.6 million before costs. The capital raise attracted a strategic cornerstone investment from US-based Argentem Creek Partners, enhancing the company’s financial position to fund its global expansion plans. The proceeds will primarily support the Belfast commercial plant development, Viridion joint venture activities, US supply chain initiatives, and ongoing work at Makuutu.
Complementing this, IonicRE strengthened its leadership team with two senior appointments, Patrick Brindle as Lead – US Operations and Claire Blanchelande as Commercial Director. Both bring extensive experience in critical minerals markets, positioning the company to deepen engagement with global customers and accelerate project development.
Outlook and Strategic Positioning
Looking ahead, IonicRE aims to capitalise on supportive policy environments and robust infrastructure, particularly in the UK, to advance its commercial rare earth oxide manufacturing facility at Belfast Harbour. The company is actively pursuing capital grant funding and engaging with strategic investors and debt financiers to secure the necessary investment for a final investment decision.
Globally, IonicRE’s integrated approach; combining mining, refining, and recycling across multiple continents; positions it as a key player in the evolving rare earths market. This strategy addresses the urgent need for secure, sustainable, and traceable rare earth supplies critical to electric vehicles, renewable energy, and defence technologies.
Bottom Line?
Ionic Rare Earths is poised to become a cornerstone of ex-China rare earth supply chains, but execution risks remain as it advances multiple complex projects.
Questions in the middle?
- Will IonicRE secure the anticipated capital grant funding to underpin its Belfast commercial plant?
- How will evolving Chinese export controls impact global rare earth pricing and supply dynamics?
- What timelines and financing structures will emerge for the Viridion JV’s CRITR facility in Brazil?
