Ionic Rare Earths Ltd has signed a non-binding memorandum of understanding (MoU) with DNA Link (KOSDAQ: 127120) to collaborate on the recycling of rare earth permanent markets in South Korea, the third largest magnet market globally.
The two companies will work together to build a secure, sustainable and traceable ex-China rare earths supply chain in South Korea, with potential input from the South Korean Government and other international entities that wish to establish sovereign rare earths supply.
De-risking Belfast recycling operation
“IonicRE is building a global industrial technology business based on our patented magnet recycling technology and this latest agreement is another important piece in our world expansion, from the UK to Brazil and now Korea and the United States,” Ionic Rare Earths executive chair Brett Lynch said.
“Importantly, this agreement is perfectly aligned with planning for the commencement of magnet recycling at Ionic Technologies’ proposed commercial operation in Belfast, UK, underpinning the supply chain for our new plant.
“Our de-risked, de-mined strategy is the fastest pathway to delivering shareholder value, replicating our Belfast model in new international markets to swiftly create a secure and sustainable ex-China rare earths supply chain.”
Read: Ionic Rare Earths progresses magnet recycling and heavy rare earths projects
Building presence in South Korea
As the third largest importer of permanent magnets behind the US and Germany, South Korea imported more than 5,400 tonnes of magnets from China in 2021, with the automotive industry and electric vehicles being a key driver of demand.
“IonicRE is delighted to collaborate with DNA Link, which has exciting plans to develop its own permanent magnet production plant in South Korea,” Ionic Rare Earths managing director Tim Harrison said.
“This is an opportunity for IonicRE to both secure swarf feed materials from and supply our recycled separated magnet REOs to DNA Link’s Korean facility, due to come online in 2026.
“Significantly, this will underwrite a portion of both the feed and product requirements for our Belfast commercial recycling plant, expected to commence operations in late 2026.”
DNA Link has ambitions to build an international permanent magnet production belt stretching from South Korea to the US.
The company plans to establish a permanent magnet manufacturing facility in Yesan, South Korea, to produce 1,000 tonnes per year of neodymium-iron-boron (NdFeB) magnets, expecting to begin production later this year.
The timing aligns with the planned commissioning of IXR’s Belfast magnet recycling plant, offering strong operational synergies.
Significant milestone
“DNA Link is pleased to agree on this non-binding MoU with IonicRE, which like DNA Link is an emerging leader in the global rare earth value chain,” DNA Link CEO Jun Young Lee said.
"This MoU marks a significant milestone in DNA Link’s journey to become a global rare earth permanent magnet manufacturer.
“By combining our expertise in permanent magnet manufacturing with IonicRE’s advanced recycling and refining technologies, we are laying the foundation for a more sustainable, resilient, and innovative supply chain.”
Analysts predict demand for NdFeB magnets will continue to grow at a compounding annual growth rate of 8.7%, driven by robotics, advanced air mobility and electric vehicle sectors.
With the US banning Chinese rare earth oxides in its defence industry from 2027 and the EU mandating rare earth recycling, the outlook for rare earths and the technology required to recycle them is a strong one.
An ex-China supply chain
“By applying the first mover capability offered by Ionic Technologies’ patented magnet rare earth recycling technology, our company can help build South Korea’s sovereign capability in rare earths and other international markets, developing a truly global ex-China supply chain,” Harrison continued.
“As shown by our recent successful feasibility study on commercial REO manufacturing in Belfast, our technology has enormous potential internationally and we are focused on further global scale out via joint ventures and commercial partnerships such as this agreement.”
The MoU outlines several preliminary terms and intentions:
- Potential to recycle swarf from DNA Link’s Korean plant back through Ionic Technologies facilities.
- Potential magnet REO offtake from Ionic Technologies’ Belfast magnet recycling facility to feed into DNA Link’s new NdFeB permanent magnet capacity in South Korea.
- Collaboration on further value addition and supply chain initiatives, including the conversion of REOs to metal, as per specifications provided by DNA Link.
- Co-operation on establishing US-based NdFeB permanent magnet capacity, including the supply of recycled magnet REOs.
- Potential to integrate magnet recycling via a joint venture with DNA Link in the Korean market.
- Collaboration with DNA Link on Korean end-of-life (EOL) magnet sourcing to build scale for potential domestic Korean magnet REO capability, including securing government support.
- Work together to develop a transparent pricing basis for customer engagement on new, alternative supply chains.
“Together, we will not only enhance our capabilities in Korea but also expand our global footprint, driving the future of clean technologies through responsible resource management,” Jun Young Lee continued.
“This partnership embodies our shared vision of establishing a full rare earth supply chain within Western countries and find alternative solutions to dependency on China.”