ASX-listed Ionic Rare Earths (IonicRE) has signed a nonbinding memorandum of understanding (MoU) with UK-based metals and alloy manufacturer Less Common Metals (LCM) to work collaboratively on building a Western supply chain for rare earth permanent magnet production.
Under the terms of the MoU, both IonicRE and LCM will seek to formalise definitive agreements to collaborate on the supply of materials for high-purity rare earth oxides (REOs).
The MoU also encompasses additional collaboration with the governments of the UK and other international entities to pursue mutual incentives.
“We are delighted to progress the relationship further with LCM and work together on a much more expanded ambition to build resilience in new rare earth supply chains.
“LCM’s decades-long experience and its innovative approach make it a valuable partner and we look forward to progressing this partnership further as we build a Western rare earths supply chain from recycled magnets.
“This relationship provides a key unlock from our high purity magnet REOs now to the metals and alloys that magnet manufacturing requires, and collectively we now have a much stronger position working together with a common goal,” says IonicRE executive chairperson Brett Lynch.
The agreement outlines a number of areas of mutual interest where IonicRE and LCM have agreed to work collaboratively to build a more resilient magnet rare earth supply chain.
The MoU outlines the preliminary terms and intentions between the parties for several agreements.
This includes collaboration on swarf/magnet recycling to deliver high-purity oxides; collaboration on the production of other alloys – including samarium/cobalt and scandium – from high-purity oxides; development of domestic and international supply chain activity; collaborative engagement with UK and other international governments to further mutual interests; and to pursue opportunities in the US for magnet recycling.
The parties aim to formalise definitive agreements pertaining to collaborative engagement on the supply of materials for high-purity oxides under this MoU.
Further, IonicRE says the MoU encompasses additional collaboration with the governments of the UK and other international entities to pursue mutual incentives.
In September 2023, IonicRE – through its 100%-owned UK-based subsidiary, Ionic Technologies International – secured a collaboration partnership with LCM and Ford Technologies to develop a UK supply chain for recycled magnet rare earths to magnets, obtaining UK government support through grant funding.
Ionic Technologies has developed rare earth element (REE) separation and refining technology and applied this to the recovery and separation of individual rare earths from spent permanent magnets and waste materials in the supply chain.
The patented technology offers first-mover capability for individual magnet rare earth recycling, separating 99.9% plus magnet REOs, specifically neodymium, praseodymium, dysprosium and terbium.
In support of the collaboration with LCM and Ford, in July 2024, the first supply of separated neodymium/praseodymium oxide, dysprosium oxide and terbium oxide will be supplied to LCM, which will convert to metals first, then alloys, prior to magnet manufacture – through a Europe-based subcontractor.
Finally, the magnets produced from the recycled REOs will be delivered to Ford’s electric vehicle (EV) drive train production facility in Halewood, in the UK, as part of its development of EV production.
The majority of Ford’s European Union EV production is expected to come from the Halewood facility, with plans to produce close to half a million units a year by 2026 in line with growing EV demand.
Ford will test and analyse the performance of magnets provided through the project, to prove the efficacy of high-specification magnets containing REEs of recycled origin from Ionic Technologies.
Each stage of the process from magnet recycling to EV testing will generate waste (magnets and swarf), including the magnets used in Ford's EV motors. Ionic Technologies will recycle this material, thus completing a totally circular rare earth supply chain within the UK.
“LCM has found IonicRE’s recycling technology very capable and with sufficient flexibility to assist LCM in the recycling of a wide range of materials and products including materials sourced from outside of the rare earth magnet field and we have been delighted with our progress to date,” says LCM chairperson Grant Smith.
IonicRE says it and LCM recognise the importance of promoting environmentally responsible, safe, and sustainable practices in all aspects of their projects and operations and have committed to the highest industry standards in safety, environmental protection, and sustainability, including Initiative for Responsible Mining Assurance (IRMA) or equivalent standards.
“LCM’s decades-long experience and its innovative approach make it a valuable partner and we look forward to progressing this partnership further as we build a Western rare earths supply chain from recycled magnets,” says Lynch.
“We look forward to working with IonicRE as we develop all our markets and expand our mutual capabilities,” Smith adds.