Ionic Rare Earths (ASX:IXR) used its presentation at OTC Markets’ Precious Metals and Critical Minerals Conference to outline a strategy centered on rare earth recycling and separation technology, with plans to scale from an initial commercial plant in the U.K. to additional capacity in the U.S. and other regions. Managing Director and CEO Tim Harrison said the company’s focus has shifted over the last four years toward “the back end of the supply chain,” aiming to produce separated rare earth oxides that can feed Western metals, alloy, and magnet manufacturing with “zero reliance on China.”
Recycling positioned as fastest path to Western rare earth supply
Harrison framed recycling as the quickest mechanism to add supply of key “magnet rare earth oxides,” arguing that new magnet manufacturing capacity being built in the West depends on access to separated oxides such as neodymium/praseodymium (NdPr) as well as dysprosium and terbium. He said Ionic’s U.K. subsidiary, Ionic Technologies, has developed a hydrometallurgical separation process that produces high-purity separated oxides, which he described as distinct from other recycling approaches that do not deliver separated individual elements.
Belfast commercialization plan and U.K. government support
Harrison said the planned Belfast commercial plant carries an estimated capital cost of GBP 85 million and, based on feasibility assumptions using November 2024 pricing, a payback of roughly two and a half years. He added that pricing conditions have changed since the study, citing significantly higher Western prices for dysprosium and terbium compared with China.
He said the company has secured an offer in principle for GBP 12 million from the U.K. government through the Automotive Transformation Fund, administered by the Advanced Propulsion Centre (APC). Harrison said Ionic expects to complete its “capital stack” by the middle of this year to reach a final investment decision, then move into construction with the goal of producing separated magnet rare earth oxides next year.
Harrison also pointed to Belfast’s infrastructure and proximity to offshore wind buildout as strategic, noting the U.K. is projected to be a meaningful consumer of global magnet demand by the end of the decade, driven by offshore wind and electric vehicle adoption.
Supply chain partnerships and closed-loop model
In describing a “closed-loop” supply chain in the U.K., Harrison said Ionic Technologies is recycling feedstock sourced via EMR (which he described as the U.K.’s largest metals recycler). The separated rare earth oxides then go to Less Common Metals for metal and alloy production, with magnet manufacturing through partners including Vacuumschmelze and GKN Powder Metallurgy. Harrison said magnets produced through this chain are being supplied into programs involving Ford, Bentley, and Wrightbus.
He added that the U.K. government-sponsored initiative also includes lifecycle analysis work, and he emphasized recycling’s lower carbon footprint, while noting that in recent months customer focus has increasingly shifted from emissions considerations to simply securing supply of constrained materials.
Expansion roadmap: U.S., Brazil, and Uganda
Harrison said Ionic is pursuing a “hyperscale” rollout beyond the U.K., including replicating the Belfast model in the U.S. The company has signed an MOU with a partner in Missouri, U.S. Strategic Metals, and is evaluating other U.S. opportunities. He described the Missouri site as a 1,800-acre, fully permitted location with existing infrastructure that could enable faster deployment. He also said the company is engaging with government bodies to seek support for rapid deployment and has received inbound interest from U.S. manufacturers seeking access to dysprosium and terbium.
In Brazil, Harrison highlighted Viridion, a joint venture intended to develop refinery and magnet recycling capabilities, including separation of mixed rare earth carbonate associated with Viridis’ Colossus Project. He said magnets sourced in Brazil were previously shipped to Belfast for recycling and the resulting material returned to Brazil as part of broader efforts to build a local magnet supply chain. Harrison also said Viridis and Viridion were selected as the only rare earth projects to receive financing support under a $1.4 billion Brazilian government initiative administered via BNDES and FINEP, and that Viridion received land from the Passo Fundo municipality to develop a facility incorporating magnet recycling and a refinery pilot plant.
In Uganda, Harrison described the Makuutu Project as a “development-ready” heavy rare earth deposit with environmental permits, a mining license approved in early 2024, and a feasibility study completed in 2023. He said the project has produced mixed rare earth carbonate via a demonstration plant and is in discussions with strategic partners on funding and development. Harrison emphasized Makuutu’s basket composition, saying it contains a higher proportion of magnet and heavy rare earths than many Western light rare earth projects, and highlighted yttrium as an example of pricing volatility tied to export restrictions discussed during the presentation.
Key themes: export controls, price dislocations, and policy support
Harrison repeatedly pointed to export restrictions and a widening gap between Chinese and Western pricing as drivers of urgency for non-Chinese supply. He also noted Ionic has two assets included in the U.S.-aligned FORGE initiative (previously the Minerals Security Partnership): Ionic Technologies’ recycling platform and the Makuutu project.
In a Q&A, Harrison said the company’s geographic footprint across the U.K., U.S., and Brazil positions it to benefit from government efforts to de-risk and finance new industrial capacity, citing capital deployment and grant-style support as key to accelerating buildout. He said time constraints prevented him from addressing additional audience questions during the session.
About Ionic Rare Earths (ASX:IXR)
Ionic Rare Earths Limited operates as a mineral exploration company. Its flagship project is the Makuutu rare earths project that comprises six licenses covering an area of approximately 300 square kilometers located in the eastern Uganda. The company was incorporated in 1998 and is based in Melbourne, Australia.
