Ionic Technologies, a wholly owned subsidiary of Ionic Rare Earths Ltd (ASX:IXR, OTC:IXRRF), has secured £11 million (A$22.6 million) in funding from the UK Government, aimed at advancing a first-of-its-kind rare earth permanent magnet (REPM) supply chain.
The funding will support the "CirculaREEconomy" initiative, a pioneering project designed to boost the UK's electric vehicle (EV) drivetrain capabilities and address the critical need for sustainable rare earth element (REE) supply chains in the growing EV market.
The project will be led by Ionic Technologies and is backed by a consortium of industry leaders including Ford Technologies, Bentley Motors, Wrightbus, Less Common Metals, European Metals Recycling, and the British Geological Survey.
The initiative aims to produce high-purity, separated rare earth oxides (REOs), which are vital for manufacturing magnets used in electric motors. The project’s emphasis on recycling and circular supply chains aligns with the UK's broader drive to enhance its domestic capabilities in electric propulsion and reduce reliance on foreign imports of critical materials.
Collaborative approach to circular supply chains
Ionic Technologies will leverage its proprietary technology to process rare earth materials, including materials recovered from end-of-life magnets, at its demonstration plant in Belfast.
The company will work closely with its partners, including major European REPM manufacturers such as Vacuumschmelze and GKN Powder Metallurgy, to produce magnets that meet the specific requirements of automotive original equipment manufacturers (OEMs) Ford, Bentley, and Wrightbus.
“CirculaREEconomy” supply chain initiative back by the Advanced Propulsion Centre in £11 million program.
The three-year project will also investigate the economic and environmental benefits of this circular supply chain, including reducing carbon emissions compared with traditional primary mining-based REE supply chains.
By developing high-purity REOs and using its long-loop hydrometallurgical recycling method, Ionic Technologies aims to advance the creation of a more sustainable supply chain for the EV industry.
Strategic alignment with UK’s electric vehicle goals
The funding was awarded under the UK Government’s DRIVE35 program, a £2.5 billion initiative aimed at supporting the transition to a net-zero automotive sector. The Advanced Propulsion Centre UK (APC) is facilitating the program, which backs innovative projects focused on advancing electric drivetrain technologies, including permanent magnet synchronous motors (PMSMs) essential to EV performance.
Ionic Technologies is poised to receive about £3.1 million (A$6.4 million) of the funding over the course of the project. The company’s work aligns with the UK’s goal of reducing dependence on foreign rare earth supplies and ensuring that critical components for the automotive and renewable energy sectors are sourced domestically.
“IonicRE is delighted to receive this hugely welcome and additional support from the APC to continue our work with our supply chain partners, both existing and new, as we build a sovereign and sustainable UK-based rare earth permanent magnet supply chain,” said Ionic Rare Earths managing director Tim Harrison.
Ionic Technologies staff pictured with Demonstration production batches of REOs.
Ionic’s Belfast facility is expected to be a key part of the UK's efforts to build a sovereign REPM supply chain and reduce reliance on imports, particularly from China, which has recently restricted the export of critical rare earth materials.
“With the export of REPMs from China effectively turned off in April, the customer base has felt first-hand the risk of complete dependence on a monopolistic supply chain,” Harrison said. “These initiatives demonstrate that ex-China capability is possible with the support of Western governments, and we congratulate the UK government for delivering on their vision of sovereign supply."
Push for technological independence
Ionic Rare Earths executive chairman Brett Lynch highlighted the significance of the project for the broader global supply chain.
“This is a significant demonstration of the UK government’s support for the development of a sovereign, secure and sustainable rare earth supply chain,” he said. “Vision is important, but execution is essential, and IonicRE is delighted by this additional support as we develop a fully integrated UK rare earth supply chain.”
The £11 million funding is part of a broader commitment by the UK government to foster innovation in the electric vehicle and renewable energy sectors, with Ionic Technologies aiming to be a key player in the strategic push for technological independence in critical industries.