Ionic Rare Earths (ASX:IXR) - Pioneering Sustainable Magnet Recycling in the UK with Govt. Backing

Interview with Tim Harrison, Managing Director of Ionic Rare Earths
Our previous interview: www.cruxinvest...
Recording date: 10th December 2024
Australia-listed Ionic Rare Earths Limited (IRE) is making significant strides in its magnet and heavy rare earths recycling project in Belfast, Northern Ireland. The company expects to receive substantial support from the UK government in the form of grant funding in Q1 2025, following the successful completion of a feasibility study.
IRE's Belfast plant is set to provide the UK with sovereign capability for magnet rare earths, which are crucial components in the electric motors used in EVs and wind turbines. By securing a domestic source of these critical materials, the project aims to support the UK's automotive sector, which employs around one million people.
The UK government has recognized the strategic importance of the project and has already provided £5 million in grants and commitments to date. The upcoming grant allocation, part of the £850 million Automotive Transformation Fund, is expected to be a significant cornerstone commitment towards the £85 million capital expenditure required for the commercial plant.
IRE's strategy involves leveraging its intellectual property and process design expertise to partner with industry players and investors, minimizing its own capital requirements. The company has demonstrated its recycling technology at pilot scale and is in discussions with strategic investors and potential offtake partners.
To expand globally at a lower cost, IRE is pursuing a licensing model, partnering with local companies to establish joint venture facilities. The company has already formed a joint venture in Brazil called Viridion, which plans to build rare earths recycling capacity and a refinery to process mixed rare earth carbonate from its Colossus project.
One of the key advantages of IRE's magnet recycling business model is its potential for growth. As rare earth magnet production increases to meet the growing demand from EVs and wind power, the amount of scrap and waste material available for recycling will also increase, providing a steady feedstock for IRE's plants.
The outlook for magnet rare earths is strong, driven by the global shift towards electric vehicles and renewable energy. As countries and automakers set ambitious targets for EV adoption and the expansion of wind power, the demand for magnet rare earths is expected to soar. Recycling offers a sustainable and geopolitically secure alternative to traditional mining, and IRE is well-positioned to capitalize on this growing market opportunity.
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