Interview with Tim Harrison, Managing Director of Ionic Rare Earths

Our previous interview: https://www.cruxinvestor.com/posts/ionic-rare-earths-asxixr-european-recycling-and-african-production-4944

Recording date: 30th April 2024

Ionic Rare Earths (ASX:IXR) is positioning itself to become a key supplier of critical magnet rare earths through its pioneering recycling technology and the development of the Makuutu heavy rare earths project in Uganda.

The company's primary growth driver is its 100%-owned Ionic Technologies business, which has developed a unique process to recycle end-of-life magnets into new magnetic materials. With £3.5 million funding secured from the UK government, Ionic Technologies is currently operating a demonstration plant in Belfast and working towards a commercial-scale feasibility study.

Ionic Rare Earths is targeting first production from a commercial recycling plant in Belfast by 2026, with an initial output of 200 tonnes per annum of magnet rare earth oxides. This would be sufficient to supply a significant portion of the UK's rapidly growing EV motor manufacturing sector. The company is also in discussions with potential offtake partners in Europe.

The company is also pursuing similar partnerships in the U.S., Asia, and Brazil to expand its recycling business globally. A recently formed joint venture with Viridis Mining and Metals aims to establish a rare earths refining and recycling business in Brazil, a key growth market for EVs and renewable energy.

Importantly, the recycling process developed by Ionic Technologies can produce the full suite of magnet rare earths, including the highly valuable heavy rare earths dysprosium and terbium. These elements are essential for high-strength permanent magnets used in EV motors and wind turbines, and are projected to be in deficit as electrification accelerates.

In parallel with its recycling initiatives, Ionic Rare Earths is advancing the 60%-owned Makuutu project in Uganda, which is considered highly prospective for heavy rare earths. The company is currently producing a mixed rare earth carbonate from a demonstration plant for evaluation by potential offtake partners.

The investment case for Ionic Rare Earths rests on its exposure to the exponential growth in demand for magnet rare earths, driven by electrification and decarbonization. With a proven recycling technology, first-mover advantage, and a clear path to commercialization, the company is well placed to become a major supplier of recycled magnet rare earths outside of China. In addition, the Makuutu primary development project provides direct exposure to critical heavy rare earths, diversifying the company's supply sources and mitigating development risks.

Key catalysts for Ionic Rare Earths over the coming year include the completion of the Belfast commercial feasibility study, the signing of offtake and funding agreements for both the recycling and primary development businesses, and further progress on global expansion opportunities. With a strong macro tailwind, experienced management team, and government and industry support, Ionic Rare Earths represents a compelling opportunity for investors to gain exposure to the rare earths sector and the global energy transition.
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View Ionic Rare Earth's company profile: https://www.cruxinvestor.com/companies/ionic-rare-earths-ltd

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