Ionic Rare Earths Limited (ASX: IXR) Secures UK Government Funding Application
Funding for REO Manufacturing Facility
Ionic Rare Earths Limited (ASX: IXR) has lodged a substantial capital grant application with the UK Government via the Automotive Transformation Fund. This funding aims to accelerate the development of a commercial Rare Earth Oxide (REO) manufacturing facility in Belfast. The initiative is pivotal for establishing a sovereign magnet REO capability in the UK, promoting energy transition and regional growth in Northern Ireland.
Significant Feasibility Study Results
The funding application comes after a successful Feasibility Study revealing strong potential for a profitable magnet recycling business. The study indicated positive financial outcomes, including a net present value (NPV) of US$502 million and an internal rate of return (IRR) of 43.6% based on a production capacity of 400 tonnes per annum over a 20-year operational life.
Executive Perspectives
IonicRE Managing Director, Tim Harrison, highlighted the importance of this grant application as a milestone for the development of a world-scale REO facility. “The UK Government has consistently shown strong backing for our patented magnet recycling,” Mr Harrison said. He added that the technology supports the creation of a sustainable UK supply chain essential for net-zero goals.
Future Development and Partnerships
The company is actively exploring additional government-backed financing to support further investments in Northern Ireland. The estimated capital expenditure for the proposed facility in Belfast amounts to US$108.7 million. IonicRE is optimistic that the UK Government funding, combined with strategic investor and debt financing, will facilitate a Final Investment Decision in early 2025.
Ionic Technologies, a wholly-owned subsidiary of IonicRE, benefits from significant support from the UK Government, receiving past grants totalling £1.72 million. The company also aims to engage in commercial partnerships with various industry players, enhancing the supply chain for critical raw materials.
Ionic Technologies remains a pioneer in recycling Neodymium-Iron-Boron (NdFeB) magnets, contributing to a circular economy essential for advanced manufacturing and renewable energy initiatives.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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