Ionic Rare Earths Ltd (ASX:IXR, OTC:IXRRF) highlighted major progress across its integrated rare earths supply chain strategy in quarterly results released on Thursday, advancing magnet recycling, refining and project development in the United Kingdom, United States, Brazil and Uganda.
The company’s activities were underpinned by a A$3 million capital raise and supported by growing geopolitical urgency to secure ex-China supplies of magnet and heavy rare earths — particularly following China’s April restrictions on exports of key elements such as dysprosium and terbium.
UK magnet recycling strategy gains momentum
Ionic’s UK-based subsidiary, Ionic Technologies, signed a non-binding MOU with European Metals Recycling Ltd during the quarter, agreeing to supply end-of-life magnets and collaborate on recycling processes for the company’s Belfast demonstration facility.
Post-quarter, the Ionic-led CirculaREEconomy consortium — which includes Ford Technologies Ltd, Bentley Motors Ltd, Wrightbus, Less Common Metals and others — secured £11 million (A$22.6 million) in UK government backing to develop a domestic rare earth permanent magnet supply chain. Ionic’s share of the funding is about £3.1 million (A$6.4 million).
The program, which begins August 1, will support magnet REO separation and supply chain innovation, with Ionic Technologies providing feedstock processing and leading the project. The company also engaged with UK stakeholders during the quarter, including the All-Party Parliamentary Group on Mid-Stream Technologies and the UK Department for Business and Trade.
Expansion into US magnet and refinery markets
Ionic also reported progress in talks with US-based partners regarding potential rare earth separation and recycling plants across multiple states. These would leverage the company's Belfast-developed intellectual property and could include the establishment of US-based facilities under the Viridion joint venture.
Samples of high-purity separated REOs have been dispatched to prospective US partners, and the company is advancing engineering and planning to support site selection and early works.
In parallel, Ionic is updating scoping studies for a potential US refinery to process mixed rare earth carbonate (MREC) from the company’s 60%-owned Makuutu project in Uganda and other global ionic adsorption clay (IAC) sources. A previous study outlined a 4,000-tonne-per-annum facility in Tennessee, with product outputs including neodymium, praseodymium, dysprosium and terbium oxides.
Brazil JV Viridion delivers first recycled REOs
In Brazil, Ionic’s 50:50 JV with Viridis Mining and Minerals Ltd (ASX:VMM), Viridion, delivered its first batch of locally sourced and recycled rare earth oxides to CIT SENAI’s Lab Fab facility. These were processed from Brazilian end-of-life magnets using Ionic’s Belfast technology and are now undergoing testing for magnet production quality.
Viridion also advanced to the second phase of funding consideration under Brazil’s national BNDES and FINEP programs, which aim to invest more than R$8 billion in critical minerals and innovation. The funding would support pilot plants, demonstration-scale refining and recycling, and associated research and development.
In July, Viridion secured land in Poços de Caldas for the construction of South America’s first rare earth refining and recycling hub, the Centre for Innovation, Technology and Recycling (CRITR). The facility will replicate Ionic’s Belfast demonstration plant and target up to 30 tonnes per annum of feedstock capacity by late 2026.
Makuutu in Uganda gains strategic significance
The Makuutu Heavy Rare Earths Project in Uganda, 60% owned by IonicRE, has gained increased attention amid global supply concerns. With a mining licence already granted for the central zone and additional applications underway, the project is being marketed to strategic investors and Mineral Security Partnership members as a low-capex, shovel-ready source of high-value MREC.
The Makuutu basket contains an unusually high proportion of heavy rare earths — particularly those subject to China’s recent export restrictions — and is considered one of the most advanced IAC projects outside of China and Myanmar.
Corporate activity and outlook
During the quarter, IonicRE raised $3 million through convertible notes, with shareholder approval granted in July. The company closed the quarter with about $2.8 million in funds.
Looking ahead, IonicRE will focus on advancing its Belfast commercial facility, securing grant support and FEED approvals, and pursuing development options for facilities in Brazil and the US.