How Iondrive’s IONSolv™ Could Transform US Rare Earth Recycling
Iondrive Limited’s Phase 1 techno-economic evaluation of its IONSolv™ modular rare earth elements recycling plant reveals promising financial metrics and a scalable US rollout strategy. Phase 2 validation is underway to refine assumptions and advance commercial deployment.
- Phase 1 evaluation confirms positive economics for 2ktpa modular REE recycling plant
- Projected post-tax NPV of US$7 million and IRR of 46% with 2.6-year payback
- Modular design supports scalable deployment across US magnet waste hubs
- Recovery focused on high-value rare earths – neodymium, praseodymium, dysprosium
- Phase 2 laboratory validation underway to confirm process efficiency and reagent reuse
Techno-Economic Validation of IONSolv™
Iondrive Limited (ASX – ION) has taken a significant step forward in the rare earth elements (REE) recycling space with the completion of a Phase 1 techno-economic evaluation for its proprietary IONSolv™ modular processing plant. Designed to recover REEs from spent permanent magnets, this 2,000 tonnes per annum (2ktpa) plant concept demonstrates a compelling financial profile, including a post-tax net present value (NPV) of US$7 million and an internal rate of return (IRR) of 46%, with a payback period of just 2.6 years.
The evaluation, conducted by ProProcess Engineering and ModelAnswer Commercial Analytics, integrates process design data and cost estimates, reflecting current reagent pricing, energy, and labour assumptions. The results indicate that each modular unit can produce approximately 115 tonnes of mixed rare-earth oxides annually over a 10-year operational life, with revenue driven predominantly by neodymium, praseodymium, and dysprosium; critical metals in high demand for technology and clean energy applications.
Strategic Implications for US Supply Chains
Beyond the strong financial metrics, the study underscores Iondrive’s potential to address a pressing strategic challenge – reducing North America’s reliance on imported rare earth oxides, particularly from China-controlled supply chains. By transforming magnet waste; traditionally an expensive disposal problem; into a domestic source of critical minerals, IONSolv™ offers a pathway to bolster regional supply security through urban mining.
The modular nature of the plant design supports a scalable rollout strategy, enabling multiple units to be deployed across key US magnet-waste hubs. This flexibility could accelerate the establishment of a distributed recycling infrastructure, aligning with broader geopolitical and environmental priorities.
Next Steps – Phase 2 Laboratory Validation
While the Phase 1 evaluation provides a robust foundation, Iondrive is already advancing Phase 2 laboratory validation to independently confirm critical process assumptions. This 16-week program focuses on reagent consumption, solvent recovery and reuse, and overall process efficiency. The outcomes will refine the economic model and feed into detailed plant engineering, moving the project toward a Project Feasibility Study (PFS) standard.
CEO Dr Ebbe Dommisse highlighted the importance of this next phase, emphasizing that the validation work will ensure a scalable and commercially viable technology platform. The company’s broader vision includes leveraging its Deep Eutectic Solvent (DES) technology not only for REE recycling but also for battery and solar panel recycling, positioning Iondrive at the forefront of sustainable critical mineral recovery.
Market Context and Pricing Considerations
Pricing inputs for the economic model were benchmarked against recent market data, with neodymium and praseodymium oxides valued at approximately US$64,000 per tonne and dysprosium at US$168,000 per tonne (at 80% payables). While there is no standardized market for mixed rare-earth oxide bundles, the study’s pricing assumptions align with negotiated contract ranges between refiners and processors.
Capital expenditure estimates are competitive relative to comparable hydrometallurgical projects, supported by lower reagent usage and high solvent recovery potential. The model remains resilient under sensitivity analyses, maintaining economic viability with solvent recovery rates above 80% and solvent reuse exceeding 10 cycles.
As Iondrive progresses, the industry will be watching closely to see how these promising early results translate into commercial reality, particularly given the strategic importance of rare earth elements in global technology supply chains.
Bottom Line?
Iondrive’s next phase of validation will be pivotal in confirming the commercial viability of its modular REE recycling technology and shaping its role in North America’s critical minerals landscape.
Questions in the middle?
- Will Phase 2 laboratory results validate the key process assumptions to support full-scale deployment?
- How quickly can Iondrive scale modular plants across multiple US magnet waste hubs?
- What competitive advantages will IONSolv™ hold against established REE recycling technologies?