Ionic Rare Earths Ltd spent the December quarter making further progress in its magnet recycling and heavy rare earths projects, which are critical to the global energy transition, advanced manufacturing and defence.
The company progressed project development and operational capabilities across its international portfolio, amid increasing efforts to establish a secure and sustainable rare earths supply chain outside China.
The company’s progress spans its fully owned UK-based magnet recycling subsidiary, Ionic Technologies International Limited, its 50% interest in the Viridion Joint Venture in Brazil with Viridis Mining and Minerals Ltd, and the 60%-owned Makuutu Heavy Rare Earths Project in Uganda.
Ionic Technologies advances Belfast facility
Ionic Technologies, a wholly owned subsidiary of Ionic Rare Earths, has demonstrated strong commercial potential for its rare earth oxide (REO) manufacturing facility in Belfast, as outlined in its feasibility study.
The study indicates a post-tax net present value (NPV7.5) of US$502 million, an internal rate of return (IRR) of 43.6% and a projected net revenue of US$2.1 billion. With an expected EBITDA of US$1.7 billion, the facility is anticipated to achieve capital payback within 2.4 years.
The operation is designed for an annual throughput of 1,200 tonnes, producing 400 tonnes per annum of separated magnet REOs over a 20-year lifespan.
Summary of financial metrics.
Permitting for the site is progressing, with construction expected to be completed by late 2026, positioning the facility to supply sovereign magnet REOs for the Western supply chain.
Additionally, Ionic Technologies has applied for a significant capital grant from the UK Government through the Automotive Transformation Fund, administered by the Advanced Propulsion Centre.
Further strengthening its position in the rare earths sector, the company has secured an additional A$2.46 million in grant funding from the UK Government.
This funding will support partnerships focused on recycling rare earth permanent magnets, including collaborations with Less Common Metals (LCM) and Vacuumschmelze, aimed at enhancing the UK and European supply chains.
Advancing Brazilian joint venture
IXR has secured support from Invest Minas, the investment promotion agency of Minas Gerais, for its magnet recycling technology through the Viridion joint venture (JV). The backing marks a significant step in establishing Brazil’s capability in rare earth refining and recycling.
The company is in discussions to secure a site for pilot plants, which will include a rare earth oxide (REO) refinery and magnet recycling facilities. These will be located near the existing operations of Viridis, a key partner in the initiative.
JV partner executives from Viridis and industry figures from Minas Gerais at the MoU signing ceremony in Perth – (from left) Germano Vieira (partner Alger), Ronaldo Barquete (director of Invest Minas), Klaus Peterson (Viridis in-country manager), Rafael Moreno (Viridis CEO), Flavio Roscoe (president FIEMG), Fernando Passalio (secretary of Development Minas Gerais), Agha Shahzad Pervez (Viridis executive chairman), JP Braga (CEO Invest Minas)], Antonio Malard (partner Alger).
In a further move to advance rare earth recycling in South America, IonicRE has signed a five-year memorandum of understanding with SENAI FIEMG Innovation and Technology Centre.
The agreement provides access to Lab Fab, the region’s first rare earth magnet laboratory, supporting research and development in magnet recycling and refining processes.
Ionic Rare Earths maintains Makuutu stake
Makuutu is among the world's largest and most advanced ionic adsorption clay (IAC) deposits, representing a globally strategic resource for near-term, low-capital development and ensuring long-term security of magnet and heavy rare earth oxide (REO) supply.
The project is being developed by Rwenzori Rare Metals Limited (RRM), a privately held Ugandan company that owns 100% of Makuutu. Ionic Rare Earths (IonicRE) holds a 60% stake in RRM and had entered into a conditional share purchase agreement to acquire an additional 34%, which would have increased its ownership to 94%.
However, due to market conditions in the rare earth sector, the company has opted not to proceed with the acquisition at this stage, while discussions with RRM partners remain ongoing.
During the December quarter, IonicRE continued financing discussions with partners in the Mineral Security Partnership (MSP), which has recognised Makuutu’s strategic heavy REO potential.
Additionally, RRM secured approval for TN04452, covering the renewal of Exploration Licences (EL) 00147 and EL00148.
Following amendments to Uganda’s Mining Act in 2022 and Mining Regulations in 2023, RRM submitted applications for TN4445, TN4447 and TN4452 to secure areas previously affected by changes to the national cadastre system.
While approval for TN04452 has been granted, RRM is awaiting decisions on TN04445 and TN04447.
Strengthened financial position
Ionic has strengthened its financial position with the completion of a A$1.65 million placement, providing additional capital to support its ongoing projects. The company also raised approximately A$766,000 through a share purchase plan.
Finally, IonicRE received a research and development (R&D) rebate of A$613,000 from the Australian Taxation Office (ATO), reinforcing its commitment to innovation and technological advancement in the rare earths sector.
The funds go towards advancing the above initiatives.
What’s next?
IXR is now evaluating commercial options to advance to Front End Engineering Design (FEED) with a suitable Engineering, Procurement and Construction Management (EPCM) partner while continuing engagement with local stakeholders to accelerate the development of its Belfast facility.
The company is also progressing permitting and approvals for the commercial site at Queens Island in Belfast Harbour, with final approvals anticipated within the year.
The feasibility study has strengthened IonicRE’s engagement with the UK Government, project partners and investors, as the company targets a Final Investment Decision (FID) in the first half of 2025 and first production in late 2026, subject to regulatory approvals and project financing.
IonicRE is also awaiting the outcome of its application for a major capital grant from the UK Government under the Advanced Technology Fund (ATF), administered by the Automotive Propulsion Centre (APC).
If secured, this funding would establish the UK’s first sovereign magnet rare earth oxide (REO) capability. A decision is expected in the first quarter of 2025.
Additionally, the company is in discussions with strategic investors and debt financiers to secure the capital required to progress towards FID.