Ionic Rare Earths Ltd (ASX:IXR, OTC:IXRRF) is awaiting finalisation of the Mining Licence Application (MLA) at its Makuutu Rare Earth Project in Uganda as it looks to continue to advance building its downstream capacity in the United States.
The company made significant progress in 2022, particularly with its 100%-owned magnet recycling subsidiary, Ionic Technologies facility in Belfast, UK and continues to focus on advancing discussions with several groups who have indicated a desire for greater critical mineral supply security and specifically access to the Makuutu basket of heavy rare earth elements.
Ionic has also been in discussions with US State representatives to best locate and establish a rare earth separation and refining plant in close proximity to suppliers of reagents, and potential end-user customers.
The nominated location would also be within close proximity to a technical partner who would enhance the potential supply chain for value addition of separated and refined rare earth oxides (REO) to value-added products.
Ionic is engaged with the US Government departments, US automotive industry and other OEMs, as it looks to increase its US-based representation by establishing relationships with potential strategic partners that can assist with funding for the development of the refinery.
Advanced scoping study
The company feels that any discussions are likely to be further supported once the Refinery Scoping Study, which is well advanced, is finalised. This is expected to occur at the end of Q1 2023, pending key agreements being reached on a proposed location.
Establishing magnet recycling facility
With key personnel now in place in the UK, Ionic is progressing discussions to expand its activities in the US to include the establishment of a magnet recycling facility with a strategic partner.
The company believes that the magnet recycling sector presents an opportunity to enter the US market early and start commercial supply engagement with customers of magnet rare earth products.
It should also enable Ionic to participate in initial programs aimed at building US domestic rare earth capability.
With geopolitical tensions high and US government initiatives to support the domestic production of permanent magnets to provide a foundation for US manufacturing across several industries in train, Ionic’s vision is to be an early mover in the rare earths supply chain, supported by a long life, magnet and heavy rare earths asset like Makuutu.