Ionic Rare Earths Lands £12M UK Grant for 400-Tonne Rare Earth Recycling Plant
Ionic Rare Earths’ UK subsidiary has received a £12 million capital grant offer from the UK Government to develop a pioneering rare earth magnet recycling facility in Belfast, aiming to bolster the UK’s sustainable supply chain for critical minerals.
- £12 million capital grant offer from UK Government’s DRIVE35 program
- 400 metric tonnes per annum of high-purity rare earth oxides production planned
- Project aligns with UK’s Critical Minerals Strategy to reduce import reliance
- £85 million total project cost with ongoing strategic investor discussions
- Facility to create skilled jobs and support UK automotive and advanced manufacturing
Government Backing for Rare Earth Recycling
Ionic Rare Earths Limited (ASX – IXR) has taken a significant step forward in establishing a commercial rare earth magnet recycling plant in Belfast, UK. Its wholly owned subsidiary, Ionic Technologies, has been offered a £12 million capital grant under the UK Government’s DRIVE35 Funding Program. This funding is designed to support the industrialisation of zero-emission vehicle technologies and is a cornerstone for the planned £85 million project.
The proposed facility will produce 400 metric tonnes annually of high-purity rare earth oxides (REOs), including neodymium, praseodymium, dysprosium, and terbium. These materials are critical components in permanent magnets used in electric vehicles, wind turbines, and defence technologies. Ionic Technologies’ patented hydrometallurgical recycling process promises a sustainable and efficient method to recover these elements from end-of-life magnets and manufacturing waste.
Strategic Alignment with UK Critical Minerals Policy
This initiative directly supports the UK’s updated Critical Minerals Strategy, which aims to reduce dependency on foreign imports by increasing domestic production and recycling to 30% of the UK’s mineral needs by 2035. Belfast has been identified as a critical minerals cluster, and Ionic Technologies’ plant will be a flagship project within this framework, fostering local economic growth and job creation.
The DRIVE35 program, funded by the Department for Business and Trade and delivered with partners like the Advanced Propulsion Centre UK and Innovate UK, seeks to build a competitive UK supply chain for zero-emission vehicles. Ionic Technologies’ facility is positioned to play a vital role in securing a sovereign and sustainable supply of rare earths for the UK’s automotive and advanced manufacturing sectors.
Next Steps and Market Implications
While the Offer in Principle is subject to due diligence and conditions, Ionic Rare Earths is actively engaging with strategic investors to secure the remaining equity capital required for a final investment decision. The company targets first production within two years, marking a rapid scale-up from its current demonstration plant capacity.
Market dynamics have shifted favorably with recent price escalations in magnet rare earths, particularly dysprosium and terbium, driven by export restrictions from China. This enhances the commercial viability of Ionic’s recycling plant, potentially positioning it as a key supplier outside of China’s dominant market.
Beyond economics, the project underscores a broader shift towards circular economy principles in critical mineral supply chains, with Ionic Technologies demonstrating significant carbon emission reductions compared to traditional mining-based sources.
Bottom Line?
With government backing and strategic investment underway, Ionic Rare Earths is poised to reshape the UK’s rare earth supply landscape, next up, securing final funding and hitting production targets.
Questions in the middle?
- Will Ionic Rare Earths secure the remaining £73 million in equity to proceed to final investment?
- How quickly can the Belfast plant scale production to meet growing UK and European demand?
- What impact will this project have on global rare earth supply chains and pricing dynamics?
