Ionic Rare Earths Scales Up Heavy Rare Earth Production Amid Global Supply Crunch

Key Highlights:

• Dysprosium and terbium oxide production increases at Ionic Technologies’ Belfast plant.
• Responding to urgent demand from the US, Europe, and Asia amid China’s rare earth export curbs.
• Dy and Tb prices triple in Q2 2025; Western customers seek alternative supply chains.
• IXR’s vertically integrated strategy strengthens its position in the global HREO market.
• Stock Price (30 July 2025): A$0.020

Ionic Rare Earths Ltd (ASX: IXR) has made a significant move to fill a widening global supply gap for heavy rare earth elements (HREEs), announcing a strategic ramp-up in the production of dysprosium and terbium oxides at its Belfast facility.

The company’s 100%-owned subsidiary, Ionic Technologies, has responded swiftly to a surge in requests from U.S., European, and Asian manufacturers, driven by heightened demand and severe supply constraints triggered by China’s recent export restrictions.

“Since the April rare earth export controls announced by China, we’ve been flooded with enquiries from automakers and manufacturers in the West,” said Managing Director Tim Harrison. “This has led to a tripling of prices for both Dy₂O₃ and Tb₄O₇ in just three months. We’re now producing increased quantities of revenue-generating heavy rare earth oxides and monetising our available products.”

A Strategic Pivot to High-Purity Heavy Rare Earths

The Belfast demonstration plant, operating 24/7 since January 2024, has been instrumental in producing high-purity REOs (rare earth oxides) from both recycled magnets and industrial waste (swarf). With high-grade recovery capabilities and emission reductions of up to 61% versus traditional supply chains, Ionic’s patented “made-in-Belfast” process offers a compelling low-carbon alternative to primary mining.

Exports of Dy and Tb from China were nearly non-existent in May and June, with customs data revealing just 1 kg of dysprosium and 1,200 kg of terbium shipped globally last month—both to South Korea. That supply void has forced major manufacturers to diversify their sources, positioning IonicRE’s Belfast plant as a critical lifeline.

The Geopolitical Context: A Western Supply Chain Awakens

China’s tightening grip on rare earth exports has catalysed a strategic shift in global sourcing, particularly for materials like dysprosium and terbium, which are essential for neodymium-iron-boron (NdFeB) permanent magnets. These magnets power electric vehicles, wind turbines, defense systems, and electronics.

“Prices are now soaring for rare earths, particularly these critical HREOs,” said Executive Chairman Brett Lynch. “We have the technology, inventory, and extra capacity to service the Western market, cementing our position as the UK’s leading supplier of sustainable and traceable magnet and heavy rare earths.”

From Demonstration to Commercialisation

This production scale-up aligns with Ionic’s broader goal: building a vertically integrated rare earth recycling and refining business. The company is leveraging strong relationships with U.S., UK, and EU-based partners to convert the Belfast demonstration facility into a commercial plant.

Additionally, IonicRE is spearheading the £11 million CirculaREEconomy project, commencing 1 August 2025, with support from the UK Government. This initiative aims to further develop sustainable REO separation technologies.

A Circular Economy Model in the Making

Ionic Technologies has also executed a transformational JV with Brazil’s Viridis Mining and Minerals (ASX: VMM) to develop a magnet and HREE refinery. With this partnership, Ionic will separate magnet and heavy rare earths from Viridis’ Colossus Project feedstock.

The group also owns 60% of the Makuutu Rare Earths Project in Uganda, poised to become a long-life, low-CapEx source of magnet and heavy REOs. With strong infrastructure in place and expanding operations in the U.S. and Brazil, IXR is building a rare earths ecosystem capable of supporting the global energy transition.

At the time of writing, IXR shares were trading at A$0.020, down 7.14% for the day, but up 95% over the past year—reflecting growing investor confidence in its long-term rare earths strategy.