Ionic Rare Earths Ltd (ASX:IXR, OTC:IXRRF) subsidiary Ionic Technologies is accelerating production of two critical heavy rare earths — dysprosium oxide (Dy2O3) and terbium oxide (Tb₄O₇) — at its Belfast plant in response to urgent supply requests from major customers across the US, Europe, and Asia.
The strategic move, announced on Wednesday, comes as the global shortage of these essential materials, used in the manufacture of high-performance neodymium-iron-boron (NdFeB) magnets, intensifies amid China's export restrictions, with Chinese exports now at historically low levels.
Increased production driven by supply constraints
Ionic Technologies, a wholly owned subsidiary of IonicRE, has been running the Belfast plant on a 24/7 basis since January 2024, producing high-purity rare earth oxides (REOs) for its supply chain partners.
The ramp-up in production is aimed at meeting the increased demand following China's announcement of export restrictions in April 2025, which resulted in a significant reduction in the availability of these critical materials.
Chinese customs data revealed that in June 2025, exports of Dy and Tb from China were at historic lows after completely stopping in May, with only 1 kilogram of Dy and 1,200 kilograms of Tb being shipped to South Korea. This sharply curtailed supply has led to a surge in requests from manufacturers in the West, seeking alternatives to China’s rare earths.
Responding to urgent market demands
Increased market activity has caused prices for Dy2O3 and Tb₄O₇ to triple over the past three months, highlighting the critical shortage of these materials. IonicRE is now focusing on leveraging its advanced processing technology to meet the growing need for these rare earths, which are critical to the defence, advanced manufacturing and renewable energy sectors.
“Since the recent April rare earth export controls announced by China, we have been flooded with enquiries from automakers and other manufacturers for heavy rare earths, due to the critical Western shortage of these highly strategic materials,” said IonicRE managing director Tim Harrison.
“Ionic Technologies is uniquely placed with its made-in-Belfast technology to deliver these HREOs in a short time span, and we have now moved to the next step of producing increased quantities of revenue-producing HREOs and monetising available products.”
Strengthening the Western rare earth supply chain
IonicRE’s increased production capacity at its Belfast plant is part of the company’s broader strategy to establish a secure, sustainable and traceable supply chain for rare earths outside of China. The plant’s advanced capabilities enable IonicRE to produce high-quality Dy2O3 and Tb₄O₇ to the stringent specifications required by the defence, advanced manufacturing and renewables sectors.
“The rare earths market is at a critical turning point, with prices now soaring for rare earths, particularly these critical HREOs, with demand surging but supply constrained due to China’s trade restrictions,” IonicRE executive chairman Brett Lynch said.
“We have the necessary technology, inventory, and extra capacity available to service the Western HREO market, cementing our position as the leading UK supplier of secure, sustainable, and traceable magnet and heavy rare earths.”
Expanding partnerships and market engagement
IonicRE is actively engaging with a range of manufacturers in the US, Europe and Asia to secure commercial agreements for the supply of heavy rare earths. This follows the company’s recent announcement of its involvement in the £11 million “CirculaREEconomy” project, backed by the UK government, which aims to boost the production of high-purity rare earth oxides.
The company’s ongoing work in rare earth recycling, coupled with its cutting-edge technology for separating and refining rare earths, positions IonicRE as a leader in the sustainable production of critical materials for high-demand sectors.
With the increasing demand for rare earths and the shifting global supply dynamics, IonicRE will continue to engage with potential partners and customers as it scales its production capabilities to meet the strategic needs of industries reliant on these essential materials. The company will provide further updates as these talks progress into commercial agreements, with the aim of cementing its role as a key player in the global rare earth supply chain.