How Ionic Rare Earths Is Powering Rare Earth Supply with US and UK Deals

Strategic US Partnership Boosts Rare Earth Recycling

Ionic Rare Earths Limited (ASX – IXR) has taken a significant step forward in its global rare earths ambitions by signing a non-binding Memorandum of Understanding (MOU) with Missouri-based US Strategic Metals (USSM). This partnership aims to develop a vertically integrated rare earth magnet recycling facility at USSM’s fully permitted 1,800-acre site in Missouri, leveraging Ionic’s patented magnet recycling technology.

The facility is expected to produce key rare earth oxides such as neodymium, praseodymium, and a suite of heavy rare earths including dysprosium and terbium; elements critical to advanced manufacturing, defence, and renewable energy sectors. This collaboration aligns with the recent US-Australia critical minerals framework, reflecting a shared commitment to reducing reliance on Chinese rare earth imports and enhancing supply chain resilience.

UK Government Support Underpins Belfast Expansion

In the UK, Ionic Technologies, IonicRE’s wholly owned subsidiary, has received an encouraging offer in principle for a £12 million grant from UK authorities to support the development of a commercial magnet recycling plant in Belfast Harbour. This funding is part of the UK’s updated Critical Minerals Strategy, which aims to increase domestic production and recycling of critical minerals to 30% of national demand by 2035.

The Belfast Demonstration Plant, already the first Western producer of recycled, separated magnet rare earth oxides, is poised for commercial scale-up. IonicRE is advancing engineering studies and engaging with strategic investors and financiers to secure the remaining capital needed for a final investment decision. The UK government’s backing highlights the strategic importance of the Belfast facility in securing sovereign rare earth supply chains amid global geopolitical uncertainties.

Progress in Brazil and Uganda Strengthens Global Footprint

Meanwhile, the Viridion joint venture in Brazil, a 50 – 50 partnership with Viridis Mining and Minerals (ASX – VMM), continues to make headway. The joint venture secured land for the Centre for Rare Earths Innovation, Technology and Recycling (CRITR) and is negotiating a funding package combining grants, debt, and equity to accelerate downstream refining and recycling operations. Viridis also received environmental approvals for its flagship Colossus Rare Earth Project, further bolstering the JV’s resource base.

In Uganda, IonicRE’s 60% owned Makuutu Heavy Rare Earths Project remains strategically vital as China tightens export controls on heavy rare earths. The project is shovel-ready with a mining licence and ongoing discussions with potential financiers and offtakers to expedite development. Makuutu’s rich deposit of magnet and heavy rare earth oxides positions it as a key supplier in the emerging ex-China supply chain.

Corporate Developments and Financial Position

On the corporate front, IonicRE completed a 1-for-30 share consolidation approved at its November 2025 AGM and established a facility to sell unmarketable parcels of shares. The company was also admitted to the OTCQB market in the United States under the ticker OTC – IXRRF, enhancing its visibility to North American investors.

Financially, IonicRE raised $15.6 million through a heavily oversubscribed renounceable rights issue and a subsequent placement, including a $3 million strategic investment from US-based Argentem Creek Partners. The company ended the quarter with a robust cash balance of A$12.4 million, supporting ongoing exploration, development, and corporate activities.

Looking Ahead

With supportive government policies in the US, UK, and Brazil, Ionic Rare Earths is well-positioned to expand its footprint in the critical minerals sector. The company’s focus on sustainable, traceable magnet recycling and heavy rare earth production addresses urgent supply chain vulnerabilities and growing demand driven by net-zero technologies. The coming months will be pivotal as IonicRE seeks to finalise funding arrangements, advance engineering designs, and move closer to commercial production milestones across its global projects.