Ionic Rare Earths Secures £12M UK Grant for Belfast Magnet Recycling Plant

UK Government Boosts Belfast Rare Earth Magnet Recycling

Ionic Rare Earths Limited (ASX:IXR) has taken a significant step towards commercialising its rare earth magnet recycling technology with a £12 million (approx. A$23 million) capital grant offer from the UK Government. The funding, part of the DRIVE35 program aimed at zero-emission vehicle technologies, will underpin the development of a 400 metric tonnes per annum (tpa) rare earth oxide (REO) recycling facility in Belfast. This plant, to be located on Queen's Island within the Belfast Harbour Estate, marks a 40-fold scale-up from the existing demonstration plant and aims to produce high-purity separated magnet REOs including neodymium, dysprosium, and terbium oxides.

The project aligns closely with the UK’s updated Critical Minerals Strategy, which targets increasing domestic critical mineral production and recycling to reduce dependency on imports. Belfast itself has been recognised as a critical minerals cluster, with Ionic Technologies’ facility being the first Western producer of recycled, individually separated magnet REOs. The company is now working through due diligence and funding discussions with the UK’s Department for Business and Trade and the Advanced Propulsion Centre to secure the remaining capital for the £85 million project and reach a Final Investment Decision (FID).

This development follows the company’s earlier feasibility study released in November 2024, which confirmed the economic potential of the Belfast plant. The project has also been named a ‘Strategically Important Project’ by the Forum on Resource Geostrategic Engagement (FORGE), a global alliance of 54 countries including the US and the EU, which aims to diversify critical mineral supply chains away from China. Notably, the Makuutu Heavy Rare Earths Project in Uganda, 60% owned by IonicRE, shares this designation, highlighting the company’s growing international footprint in rare earths.

Brazilian Refining and Recycling Hub Progresses

In South America, IonicRE’s 50% owned Viridion Joint Venture with Viridis Mining and Minerals (ASX:VMM) is advancing plans for the Centre for Rare Earths Innovation, Technology and Recycling (CRITR) in Poços de Caldas, Minas Gerais, Brazil. The CRITR facility aims to become South America’s first rare earth refining and recycling hub, supporting the local market’s growing demand for magnet and heavy rare earth oxides. Viridion has secured land within an industrial zone and is progressing permit applications and equipment layout designs to support plant construction targeted for the second half of 2026, subject to financing and regulatory approvals.

Viridion has also been shortlisted for significant federal funding from Brazil’s BNDES and FINEP agencies, reflecting the project’s alignment with national industrial policy. Discussions with MagBrás, a key player in Brazilian rare earths, are ongoing regarding potential REO supply, underscoring Viridion’s strategic role amid supply bottlenecks. These developments complement IonicRE’s global strategy to build secure and sustainable rare earth supply chains beyond China.

Makuutu Project Remains Shovel-Ready Amid Export Controls

The Makuutu Heavy Rare Earths Project in Uganda continues to attract attention as China tightens export controls on rare earths, particularly heavy rare earth oxides critical for clean energy and defence technologies. IonicRE’s 60% owned project boasts one of the world’s largest ionic adsorption clay (IAC) deposits, rich in magnet and heavy REOs such as neodymium, praseodymium, dysprosium, and terbium. The project benefits from existing infrastructure, a large mining licence awarded in 2024, and a completed definitive feasibility study.

Makuutu’s resource includes over 600 million tonnes of mineralisation with a product basket well-suited to offset supply shortages caused by China’s dominance. The project is fully permitted and ready for production, positioning it as a critical ex-China heavy rare earth source. IonicRE continues to engage with FORGE members and potential off-takers to secure financing and strategic partnerships that will advance Makuutu’s development.

Corporate Moves and Market Expansion

On the corporate front, IonicRE has expanded its US market presence with approval for its ordinary shares to trade on the OTCQB Venture Market under ticker OTC:IXRRF. This move aims to broaden the company’s investor base, particularly in North America, complementing its strategic partnership with Missouri-based US Strategic Metals. The company also appointed two seasoned strategic advisors: Constantine Karayannopoulos, former CEO of Neo Performance Materials, and James Rutherford, an investment professional with deep mining sector experience.

Financially, IonicRE reported a half-year net loss of A$6.2 million for the period ending 31 December 2025, slightly improved from the prior year. The company continues to invest in demonstration plant activities and exploration, with corporate costs reflecting ongoing development efforts. Recent organisational changes include a new registered office in Melbourne and the appointment of a new company secretary.

These developments build on the company’s earlier progress, including the £12 million UK government capital grant offer announced in January 2026, which signalled a major vote of confidence in its Belfast recycling technology and commercialisation pathway.