BELFAST MAGNET RECYCLING DEMONSTRATION PLANT OPERATING SCHEDULE FULL FOR NEXT 18 MONTHS; NOW PROGRESSING TOWARDS COMMERCIAL PARTNERSHIPS
STRONG PARTNER INTEREST IN IONICTECH-PLANT FULL FOR 18 MNTHS
Melbourne, April 15, 2024 AEST (ABN Newswire) - Ionic Rare Earths Limited (
ASX:IXR) (IXRRF:OTCMKTS) is pleased to advise that 100% owned UK subsidiary, Ionic Technologies International Limited ("Ionic Technologies") continues to receive numerous requests from various magnet REO supply chain participants and potential strategic partners to run both end-of-life (EOL) magnet material and swarf and magnet production waste streams trials through our rare earth recycling plant.
Strong Magnet Recycling Demand from Potential Commercial Partners is Accelerating Capacity Increase Options for Belfast Plant
- Demonstration Plant production schedule now full through to Q3 2025, with several supply chain participants, OEMs and potential strategic partners visiting Northern Ireland facility to evaluate plant performance and production output first hand;
- Ionic Technologies evaluating options for increased capacity at Belfast Magnet Recycling Demonstration Plant to cater for the strong demand from rare earth oxide (REO) supply chain participants and clear monetisation opportunity; and
- Multiple discussions now advanced regarding potential commercial partnerships which would utilise Ionic's technology for REO production from recycling.
Given increasing demand for access to the technology and capacity being developed in Belfast, Northern Ireland, the Company has now filled demand of the Plant for the next 18 months to run several campaigns as part of demonstrator programs to progress enquiries towards commercial partnerships.
Due to this unprecedented demand, IonicRE is also now exploring options to increase capacity at the Company's Demonstration Plant, together with potential new capacity with partners in other jurisdictions, amid significant demand for the production of REOs from magnet recycling, which is currently essentially nonexistent in the Western World.
The accelerating demand follows Ionic Technologies' successful continuous production of magnet REOs at the facility, with throughput ramping up to nameplate capacity (refer ASX release 25 March 2024). This production achievement also facilitates further collaboration with partners global automaker, Ford Motor Company and Less Common Metals, with the goal of developing a UK magnet REO supply chain.
Discussions to date have looked to access the magnet recycling opportunity now, as a first step to facilitate immediate capacity in building a more robust recycling to magnets supply chain, together with exploring access to the Company's Makuutu Rare Earths Project ("Makuutu") basket of magnet and heavy rare earths as capacity grows over the next few years.
IonicRE continues to build a multinational ex-China supply chain across the UK, Brazil and Uganda, with current heavy rare earth oxide production considered a "massively under-addressed blind spot in the automotive supply chain" (source: Adamas Intelligence, 2022). By 2035, Adamas projects the global rare earth market will be short more than one China's worth of NdPr oxide supply, and over five China's worth of Dy and Tb oxide supply annually (based on China's 2022 production), should supply not increase substantially more than currently projected.
In Europe, the European Union's 300 billion euro Critical Raw Materials Act (CRMA) identifies strategic raw materials critical to Europe's green and digital ambitions and for defence and space applications, while addressing future supply risks. By 2030, at least 25% of the EU's annual consumption of such materials must be from recycled sources, with not more than 65% of the Union's annual consumption of each strategic raw material at any relevant stage of processing from a single country.
IonicRE's Managing Mr Tim Harrison stated: "It is exciting to report that both the supply chain appetite and progress at our Demonstration Plant in Belfast has been excellent. We now have a wonderful showcase for the industry to see first-hand, how we can provide an immediate option for secure, sustainable, alternative magnet rare earths for a fraction of the capital required for new mine and refinery capacity, let alone a substantially reduced technical and deliverability risk profile.
"The demand for recycled and high-quality product from the Belfast magnet recycling Demonstration Plant signals that we need to bring more capacity to market, and that the latent demand from the supply chain for both the technology offering from Ionic Technologies, plus our unique positioning in Belfast and access to both EU and UK markets, positions us very well to now convert demand to commercial partnerships for the business.
"We are already fully engaged in discussions with groups now looking at the offering from Ionic Technologies as a viable near-term solution to magnet REO sovereign capacity, and a disruptor to the tight constraints on the existing supply chain."
The substantial progress in Belfast follows the Company's execution of a transformational joint venture for separation, refining and recycling of rare earths in Brazil, as part of a 50:50 joint venture with Viridis Mining and Materials Ltd (ASX:VMM) (refer ASX release 3 April 2024). The JV has cemented IonicRE as a first mover on the path to ex-China REE production and supply, with mining and refining operations now straddling Africa, Europe and South America.
IonicRE's Executive Chairman, Mr Brett Lynch commented: "It is no exaggeration to state that IonicRE is leading the field in the race to develop an ex-China supply of REOs critical to developing net-zero carbon technologies.
"Our Belfast plant is now 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 separation, refining and recycling, with planned commercial-scale production likely within just two years, offering investors direct exposure to heavy rare earths market growth.
"The European Union has stipulated the need for increased recycling, and with Europe on our doorstep Ionic Technologies has an enormous opportunity to develop a closed loop system with metal, alloy and magnet manufacturers plus OEMs that provides the necessary security of supply."
About Ionic Rare Earths Limited
Ionic Rare Earths Limited (ASX:IXR) (OTCMKTS:IXRRF) is focused on developing its flagship Makuutu Rare Earths Project in Uganda into a significant long life, low-cost, supplier of high-value critical and heavy rare earths.
Makuutu is an advanced-stage, ionic adsorption clay-hosted project highlighted by near-surface mineralisation, significant exploration upside, excellent metallurgical characteristics and access to tier-one infrastructure.
The ionic adsorption clay-hosted geology at Makuutu is similar to major rare earths projects in Southern China, which are responsible for the majority of global supply of low cost heavy and critical rare earths, specifically the high value magnet metals (Dysprosium and Terbium) Heavy Rare Earths (>98% originating from ionic clays). Metallurgical testing at Makuutu has returned excellent recovery rates, which provide multiple avenues for a simple process route.
Makuutu is well-supported by tier-one existing infrastructure which includes access to major highways, roads, power, water and a professional workforce.
Rare Earths will play a critical role in the future of clean energy. Rare Earths are a key ingredient in the permanent magnets found in wind turbines and electric vehicles.
IonicRE is led by an experienced and proven team, who have the capabilities to deliver Makuutu into production and realise value for all stakeholders.
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