Ionic Rare Earths Ltd (ASX:IXR, OTC:IXRRF) has delivered a positive feasibility study for its rare earth oxide (REO) recycling facility in Belfast, UK.
The project will recycle pre-consumer rare earth magnet scrap and end-of-life magnets, supporting the UK’s sovereign supply chain and green transition goals.
By offering an alternative to the global reliance on Chinese rare earth production, the Belfast facility will play a pivotal role in the development of sovereign, sustainable supply chains critical to the energy transition, advanced manufacturing and defence sectors.
Study projections
The study points to a post-tax net present value (NPV) of US$502 million (A$776 million), a 43.6% internal rate of return (IRR) and a capital payback period of just 2.4 years.
Over its 20-year operational life, the facility is expected to generate US$2.12 billion (A$3.26 billion) in net revenue and US$1.78 billion (A$2.76 billion) in EBITDA.
Designed for an annual throughput of 1,200 tonnes of feedstock, the plant will produce 400 tonnes of separated REOs, including high-purity neodymium oxide (Nd₂O₃), praseodymium oxide (Pr₆O₁₁), dysprosium oxide (Dy₂O₃) and terbium oxide (Tb₄O₇).
The Belfast facility, slated for a brownfield site at Belfast Harbour, represents a 40-fold scale-up from the company’s demonstration plant.
It will employ a modular design with two 200-tonne production lines, ensuring flexibility for future expansion.
The facility’s technology, developed by Ionic Technologies, is patented and enables efficient recycling without requiring mining, significantly lowering costs and environmental impact.
Construction is expected to be completed by late 2026, with the first production anticipated in early 2027, following permitting approvals.
Strong government support
The facility aligns with the UK Government’s Critical Minerals Strategy and is supported by funding from Innovate UK and the Automotive Transformation Fund (ATF).
Ionic Technologies plans to apply for additional capital grants from the ATF to strengthen its contribution to the UK’s green energy and advanced manufacturing sectors.
In addition to strong government support, Ionic Technologies has established partnerships with key players, including UK-based Less Common Metals and Germany’s Vacuumschmelze, to create a circular supply chain for rare earth materials.
This collaboration aims to produce magnets containing 100% recycled heavy and light rare earth elements, meeting the growing demand for sustainable magnet materials in the automotive and renewable energy sectors.
Ionic Rare Earths is also exploring opportunities to replicate this recycling model globally, with potential sites already picked out in the US, Brazil and Asia.
The company’s Belfast facility is expected to serve as a benchmark for efficient and sustainable rare earth recycling, providing a template for other regions to establish local supply chains.
Western REE supply chain
IonicRE managing director Tim Harrison said: “The completion of this feasibility study is a major milestone in our company’s development of a Western rare earths supply chain, initially centred on Belfast, UK.
“I congratulate our team at Ionic Technologies and all our partners for these outstanding results.
“The study confirms that the commercial case for magnet recycling is compelling, complementing the clear environmental and sustainability benefits, as well as the imminent need for REE production outside of China.”
“Financially, this represents a low capital risk pathway to sovereign magnet REO production compared to alternative sources, offering strong financial returns based on a ‘circular economy’ model of sustainable production, backed by the UK Government and our project partners.
“Even at today’s REO spot prices, this study indicates a viable, positive NPV business due to our unique low-cost, patented recycling process for separating magnet rare earths without requiring mining.
“Now that we have successfully delivered on this UK Government-supported study, we anticipate significant strategic and investor interest owing to the potential for the development to underpin UK and European net-zero ambitions, create supply certainty, reduce exposure to cost fluctuations and promote regional growth within the UK.
“The company also intends to utilise this study to progress further opportunities in target markets – the US, Europe, Brazil and Asia – where we expect further improvement on the economics."
IonicRE executive chair Brett Lynch said: “This feasibility study demonstrates that IonicRE is leading the field in the race to develop an ex-China supply of REOs using net-zero carbon technologies.
“Our Belfast plant is the first producer of recycled separated magnet REOs in the Western world, a huge achievement for all stakeholders.
"We are now moving rapidly to commercialise rare earth recycling, with planned commercial-scale production within just two years, offering investors direct exposure to the growth of a Western supply chain.
“With more than 50% of the global production of NdFeB magnets consumed for decades in the West, a sizeable inventory of material is available to recycle back into new supply chains now.”
Ionic Technologies’ demonstration scale solvent extraction (SX) circuit (left), and Ionic Technologies’ Heavy REE SX circuit (right).