Ionic Rare Earths Touts Success with Feasibility Study for its Magnet Recycling Unit in Belfast

Highlights

• IonicRE's Belfast facility demonstrates strong potential for profitable Rare Earth Oxide manufacturing through magnet scrap recycling.
• Feasibility study shows US$502m NPV and 43.6% IRR.
• Plans for construction completion by late 2026.
• Project aims to deliver sovereign rare earth capability for Western customers.
• Disrupting Chinese-dominated supply chain.

Ionic Rare Earths Limited (“ (opens in a new tab)IonicRE” or the “Company”) (ASX: IXR) presents (opens in a new tab) at the JP Morgan Rare Earths Forum, today November 18, 2024.  The company also announced yesterday that its landmark Belfast facility, backed by the UK Government, demonstrates strong returns and supply chain engagement.

Based on a recent feasibility study the company report strong potential for a profitable and unique commercial Rare Earth Oxide (REO) manufacturing facility in Belfast, UK, recycling pre-consumer rare earth magnet scrap and end-of-life (EOL) magnets and delivering sovereign capability to the UK. This latter point cannot be overstated, given the push of the West to disrupt the current Chinese-dominated rare earth element supply chain.

According to the firm’s recent media release, key study outcomes:

• NPV7.5 (post tax) of US$502m (A$776m, A$ = US$0.65).
• IRR (post tax) of 43.6%.
• Net revenue US$2.12b (A$3.26b).
• EDITDA US$1.78b (A$2.76b).
• Capital payback of 2.4 years, based on throughput of 1,200 tonnes per annum (tpa) of feed with production capacity of 400 tpa of separated magnet rare earth oxides (REO) over 20-year life of operation.

IonicRE reports on progressing site permitting, with construction planned to be completed late 2026, delivering sovereign magnet REO for Western customers from early 2027. Rare Earth Exchanges reported on the firm’s acquisition of recycling technology, now managed by the subsidiary Ionic Technologies, which is set to submit application for a significant capital grant from the UK Government via the Automotive Transformation Fund (ATF), administered by the Advanced Propulsion Centre.