ABx secures R&D support as ALCORE clears government grant repayment

R&D Rebates Add Nearly $600,000

ABx Group Limited (ASX:ABX) has received approximately $600,000 in Research and Development tax offsets, providing a financial lift as it advances rare earths and clean fluorine chemical projects in Tasmania. The disclosed amounts total $596,442.41, comprising $386,471.07 for ABx and $209,971.34 for its 83%-owned ALCORE subsidiary.

ABx's rebate principally relates to work on its wholly owned rare earths project in northern Tasmania. ALCORE's offset covers operating expenditure during 2025 on its process for producing hydrogen fluoride and fluorine chemicals from an aluminium smelter by-product, supported by an Overseas R&D Finding approved by AusIndustry.

ALCORE Closes Modern Manufacturing Initiative Obligation

The rebate arrives alongside the completion of a much larger funding obligation. ALCORE has fully repaid $2.61 million in unused funds from the Federal Government's Modern Manufacturing Initiative, removing the outstanding repayment associated with the completed grant program.

The repayment figure increased from the previously indicated $2.53 million after final project expenditure was confirmed at $7.26 million, $175,000 below the earlier forecast of $7.44 million. ALCORE had received two grant instalments totalling $5.69 million, with the unused balance repayable to the Department of Industry, Science and Resources.

Continuous Pilot Plant Rebates Remain Ahead

There is a further R&D benefit still to come, although it is not part of the current payment. ALCORE said the offset linked to capital expenditure on its continuous pilot plant will be received in future years, after depreciation begins when the plant starts operating.

That distinction matters: the $209,971 offset disclosed today relates only to ALCORE's 2025 operating expenditure. The capital-related benefit depends on the pilot plant commencing operations and the subsequent timing of depreciation, so it should not be treated as current funding.

Up to $5 Million Grant Still Unresolved

ABx's next government funding test is its Industry Growth Program application, submitted by ALCORE in late 2025. The company is seeking a Commercialisation and Growth Grant of up to $5 million, but no award has been made: the application has passed eligibility assessment and remains subject to independent merit assessment, with an outcome anticipated before the end of 2026.

The immediate news is therefore favourable but measured. ABx has secured the R&D offsets and finished repaying the unused MMI funds; the larger potential grant remains contingent, while the group continues funding the development and commercialisation of ALCORE's fluorine technology and its rare earths activities.