Ionic Rare Earths (ASX: IXR) and US Strategic Metals have agreed to a 50-50 joint venture to develop rare earth magnet recycling facilities at a fully permitted Missouri site, backed by US$100 million in funding.
- 50-50 JV to build magnet recycling facilities in Missouri
- US$100 million funding mainly from US Strategic Metals
- Focus on recycling NdFeB and SmCo magnets plus heavy rare earths
- Ionic Technologies to license magnet recycling technology
- JV aligns with US-Australia critical minerals framework
JV Targets US Rare Earth Magnet Recycling Scale-Up
Ionic Rare Earths Limited (ASX:IXR) has taken a significant step towards establishing a US-based rare earth magnet recycling capacity through a joint venture term sheet with Missouri-based US Strategic Metals (USSM). The 50-50 JV, via IonicRE’s wholly owned US subsidiary Ionic Rare Earths USA, aims to build one or more recycling facilities on USSM’s fully permitted 1,800-acre site near Fredericktown, Missouri.
The JV plans to process recycled permanent magnets including neodymium-iron-boron (NdFeB) and samarium-cobalt (SmCo), with ambitions to expand into other heavy rare earth elements like europium, gadolinium, and terbium. IonicRE’s UK-based subsidiary Ionic Technologies will contribute a non-exclusive licence for its proprietary magnet recycling technology, which has already demonstrated capability at demonstration scale.
Capital Structure and Project Scope
The initial funding commitment for the JV is US$100 million, predominantly provided by USSM (US$95 million), with a US$5 million equity injection split evenly between the two partners. This initial capital will support front-end engineering design (FEED) and accelerate demonstration-scale recycling efforts, either at the Missouri site or an alternative location agreed upon by the JV.
Governance will be shared, with USSM appointing three board members and Ionic USA two, and Ionic USA chairing the Technical Operations Committee. Ionic USA will also oversee technical, operational, and commercial activities, including feedstock procurement.
Strategic Alignment with US Critical Minerals Policy
The JV directly supports the US government’s critical minerals strategy, notably the US-Australia Framework signed in October 2025, which aims to secure supply chains for minerals essential to defence, advanced manufacturing, and renewable energy. The partnership underscores a move towards sovereign and sustainable rare earths supply chains in the world’s largest economy.
USSM CEO Stacy W. Hastie highlighted the JV as a major step toward domestic production of strategic metals, leveraging USSM’s fully permitted Missouri site and IonicRE’s proven recycling technology. Meanwhile, IonicRE Managing Director Tim Harrison emphasised magnet recycling as a cost-effective route to secure rare earth supplies for US industrial needs.
Broader Rare Earths Strategy and Next Steps
This JV complements IonicRE’s broader global footprint, which includes a £12 million UK recycling facility under development and a 50-50 JV refinery and recycling hub in Brazil. The company’s integrated approach spans mining, refining, and recycling, aiming to close the loop on rare earth supply chains critical to electric vehicles, wind turbines, and defence applications.
Definitive agreements for the Missouri JV are targeted for completion by the end of 2026, although the term sheet remains non-binding and contingent on capital contributions and other conditions. The JV’s progress will be a key indicator of the US market’s appetite for scaling rare earth recycling infrastructure amid growing geopolitical and supply chain pressures.
Bottom Line?
The Missouri JV marks a strategic push by IonicRE to embed itself in the US critical minerals ecosystem, but the venture’s future hinges on final agreements and capital deployment.
Questions in the middle?
- Will the JV secure feedstock supply to sustain industrial-scale recycling?
- How will US government policies and incentives influence the JV’s capital raising and operations?
- Can IonicRE’s UK-proven recycling technology maintain efficiency and purity standards at scale in the US?