Ionic Rare Earths (ASX: IXR) has secured binding agreements to supply critical rare earth oxides to US-based Advanced Magnet Lab, supporting domestic production of permanent magnets for defence applications under a US Defense Logistics Agency contract.
- Binding sales agreements to supply NdPr and Dy oxides to AML
- Non-binding MOU for long-term supply and recycling collaboration
- Supports US Department of War’s domestic magnet manufacturing
- Partnership aligns with US-Australia critical minerals framework
- Expands IonicRE’s sovereign rare earth supply chain footprint
Strategic Supply Deal Targets US Defence Magnet Production
Ionic Rare Earths (ASX:IXR) has taken a significant step in establishing a secure Western rare earth supply chain by signing binding sales agreements with US-based Advanced Magnet Lab (AML) to supply critical magnet rare earth oxides (REOs), specifically Neodymium/Praseodymium oxide (NdPr) and Dysprosium oxide (Dy). These materials will feed AML’s production of NdFeB permanent magnets under a US Defense Logistics Agency (DLA) contract aimed at qualifying domestically produced magnets for defence applications.
This deal marks an expansion of IonicRE’s US presence and supports AML’s innovative PM-Wire™ manufacturing platform, designed to scale traceable, high-performance magnet production within the United States. The partnership is timely amid increasing geopolitical tensions and the US Department of War’s push to ramp up domestic military drone motors and other critical defence technologies requiring rare earth permanent magnets.
Collaboration Extends to Recycling and Long-Term Supply
Beyond the binding sales contracts, IonicRE and AML have signed a non-binding Memorandum of Understanding (MOU) to collaborate on both the supply of magnet REOs and the recycling of swarf and pre-consumer waste. AML will supply these waste streams back to IonicRE for recycling into separated magnet REOs, closing the loop in a circular supply chain that aims to reduce reliance on Chinese sources and enhance supply chain sovereignty.
IonicRE’s patented magnet recycling technology, developed in Belfast, is a cornerstone of this strategy, enabling near-complete extraction of rare earth elements from end-of-life magnets and manufacturing waste. This aligns with the company’s broader global expansion, including its UK recycling facility backed by a £12 million government grant and its Brazilian joint venture refining rare earths from the Colossus Project, which has been detailed in recent updates on IonicRE’s growing footprint £12M UK government capital grant and UK circular supply chain.
Supporting US-Australia Critical Minerals Partnership
This partnership also dovetails with the historic US-Australia Framework for Securing Supply in Critical Minerals and Rare Earths, signed in October 2025, which aims to establish a secure, traceable, and sustainable supply chain for critical minerals needed for defence, advanced manufacturing, and renewable energy sectors. IonicRE’s Executive Chairman Brett Lynch emphasised the company’s commitment to supporting US efforts to achieve rare earth independence, highlighting the benefits of this bilateral framework.
AML’s recent US$2 million DLA contract award underpins the strategic importance of this collaboration, focusing on the qualification of domestically produced sintered NdFeB magnets for defence systems. AML President Wade Senti described the partnership as crucial for creating a fully traceable and sustainable supply chain that can scale with growing defence industry demands.
Building a Resilient Western Rare Earth Supply Chain
IonicRE is actively building an integrated rare earth supply chain across the Western world, combining mining, refining, recycling, and magnet manufacturing capabilities. The company’s 60% owned Makuutu Heavy Rare Earths Project in Uganda and its joint venture with Viridis Mining and Minerals in Brazil complement its recycling technology and US downstream partnerships, positioning IonicRE as a multi-jurisdictional player in the critical minerals sector.
While the binding sales agreements with AML mark a commercial milestone, the non-binding nature of the MOU leaves some uncertainty about the long-term scope of collaboration. Analysts and investors will be watching AML’s progress on DLA qualification activities and the scale-up of magnet production closely, as these will be key indicators of the partnership’s impact on rare earth supply chain diversification and geopolitical risk mitigation.
Bottom Line?
IonicRE’s US partnership with AML advances Western rare earth supply but hinges on successful magnet qualification and scale-up under US defence contracts.
Questions in the middle?
- How quickly can AML scale production of domestically made NdFeB magnets using IonicRE’s rare earth oxides?
- What are the financial terms and volumes underpinning the binding sales agreements with AML?
- Will IonicRE expand similar supply and recycling partnerships beyond AML to other Western magnet manufacturers?