Ionic Rare Earths Advances Magnet Recycling Joint Venture with Missouri-based USSM

Ionic Rare Earths (ASX: IXR) has taken another step towards establishing rare earth magnet recycling capacity in the US through a proposed 50-50 joint venture with US Strategic Metals (USSM).

The non-binding term sheet would see the partners develop one or more recycling facilities at USSM’s fully permitted 728.4-hectare site near Fredericktown, Missouri, superseding a memorandum of understanding signed in November 2025.

The initial facilities are intended to process recycled neodymium-iron-boron (NdFeB) and samarium-cobalt (SmCo) permanent magnets and scrap, with the JV also proposing to evaluate recycling other heavy rare earth elements.

The partners intend to provide US$100 million towards the initial NdFeB and SmCo facilities, comprising US$95m from USSM and a US$5m equity contribution split equally between Ionic Rare Earths USA and USSM.

FEED Work Funding

The initial US$5m equity contribution is proposed to fund front end engineering design (FEED) work and accelerate demonstration-scale magnet recycling at the Missouri site or another location agreed by the JV.

Ionic Technologies, Ionic Rare Earths’ wholly owned Belfast subsidiary, would contribute a non-exclusive licence for its magnet recycling technology covering magnets, magnet scrap and other heavy rare earth-containing compounds.

The proposed JV board would comprise three managers appointed by USSM and two by Ionic Rare Earths USA, while the latter would chair a Technical Operations Committee and take primary responsibility for technical, operational, and commercial matters as well as feedstock procurement.

“The proposed JV will seek to provide IonicRE with a practical and capital-efficient method of building rare earth magnet recycling capacity in the US, the world’s biggest economy,” managing director Tim Harrison said.

“The US will not be left behind in the race to build the industries key to national security and our economic future—we look forward to moving this JV forward as quickly as possible, working with the US government, IonicRE, and other stakeholders,” USSM co-founder & chief executive officer Stacy W. Hastie added.

High-Purity Separated REOs

Ionic Rare Earths intends the partnership to apply recycling capability already demonstrated by Ionic Technologies in the UK, with the broader objective of producing high-purity separated rare earth oxides for US industrial customers.

USSM would bring the permitted Missouri site and local execution capability, while Ionic Rare Earths would retain a meaningful role as technology partner with responsibility spanning process optimisation, flowsheet decisions, product specifications, customer qualification, and strategic supply arrangements.

The proposed structure is aligned with the critical minerals framework signed by the US and Australia in October 2025, which is aimed at securing supply chains for minerals and rare earths used in defence, advanced manufacturing and renewables.

The term sheet remains conditional on definitive agreements, capital contributions and other documentation being completed, meaning there is no certainty the proposed transaction will proceed in its current form.

The parties are now progressing definitive agreements with completion targeted by the end of 2026, after which the JV would move towards engineering, demonstration-scale activity, and construction of the initial recycling facilities in Missouri.