Ionic Rare Earths (ASX: IXR) has marked significant milestones in rare earth magnet recycling, securing US defence contracts and advancing UK commercial plant plans, while exploring a London AIM dual listing.
- First Western circular supply chain for e-motor magnets demonstrated with Ford UK
- Commenced sales of recycled rare earth oxides to US Advanced Magnet Lab for defence use
- Tenova appointed for FEED study on commercial UK magnet recycling plant
- Viridion JV in Brazil progressing refinery design and financing discussions
- Exploring dual listing on London AIM to broaden international investor base
Breakthrough in UK Circular Magnet Supply Chain
Ionic Rare Earths’ (ASX:IXR) wholly owned UK subsidiary Ionic Technologies has delivered a Western world first by demonstrating a fully circular supply chain for high-performance electric motor magnets used in Ford UK’s EV motors. This collaboration with Less Common Metals, GKN, and Ford UK proved that rare earth oxides (REOs) recycled via Ionic’s proprietary long-loop process can meet stringent automotive standards, producing magnets with performance on par with those made from mined materials.
The project aligns closely with the UK Government’s Critical Minerals Strategy, aiming to boost domestic mineral production and recycling to reduce reliance on imports. Ionic Technologies’ success under the government-backed CLIMATES initiative underscores its pivotal role in establishing a sovereign UK supply chain for rare earth permanent magnets (REPMs).
Expansion into US Defence Sector with Advanced Magnet Lab
AML’s plans to scale sintered magnet production to over 5,000 tonnes per annum by 2028 signal growing demand for secure, traceable rare earth feedstocks, which IonicRE’s recycled REOs are poised to supply.
Progress on UK Commercial Plant and Engineering Design
Following a £12 million capital grant offer from the UK Government’s DRIVE35 program, Ionic Technologies is advancing plans for a 400-tonne-per-annum commercial magnet recycling facility in Belfast. Tenova Advanced Technologies has been appointed to complete the Front-End Engineering Design (FEED) study, a critical step towards final investment decision (FID) and construction.
Planning approvals are progressing, with a public consultation period completed and a full planning application targeted for Q3 2026. The Belfast Demonstration Plant has undergone a £600,000 upgrade to increase heavy rare earth production capacity and process efficiency, supporting scale-up efforts.
Brazilian Refining and Recycling Hub Advances
The Viridion joint venture (50% IonicRE) in Brazil is moving forward on designs for the Centre for Rare Earths Innovation, Technology and Recycling (CRITR), expected to become South America’s first rare earth refining and magnet recycling hub. Discussions with Brazilian federal agencies on financing continue, with potential funding packages combining grants, debt, and equity participation.
Viridion is engaging local industrial partners to develop a demonstrator program showcasing the full magnet rare earth value chain within Brazil, supporting sovereign supply chain ambitions aligned with national industrial policy.
Strategic Importance of Makuutu Heavy Rare Earths Project
In Uganda, IonicRE’s 60% owned Makuutu project remains a strategic asset amid growing global supply concerns following China’s rare earth export controls. The project boasts a high proportion of medium and heavy rare earth oxides, critical for magnet manufacturing.
During the quarter, mining licence applications and renewal of exploration tenements progressed, with ongoing engagement with strategic investors and offtakers to unlock project value and advance development.
Corporate Developments and Capital Strategy
IonicRE is exploring a dual listing on London’s AIM market to access a broader international investor base experienced in critical minerals and energy transition sectors. This move complements its ASX listing and supports the company’s expanding UK operational footprint.
Sean Sargent was appointed COO – EMEA to spearhead commercialisation efforts across the UK, Europe, Middle East, and Africa. His extensive experience in engineering, nuclear, and defence sectors is expected to bolster project execution capability.
Corporate costs for the quarter included approximately A$1 million on Ionic Technologies activities and A$410,000 on Makuutu exploration and development. Executive director fees totaled A$256,500.
Bottom Line?
Ionic Rare Earths is advancing from demonstration to commercial scale in magnet recycling, with key partnerships and government backing setting the stage for growth, yet funding and regulatory approvals remain pivotal hurdles ahead.
Questions in the middle?
- Will IonicRE secure full funding to finalize the Belfast commercial plant by Q3 2026?
- How will the partnership with Advanced Magnet Lab influence US defence rare earth supply chain dynamics?
- Can the Viridion JV attract sufficient Brazilian government and private investment to realize the CRITR facility?