• Ionic Technologies produces high purity rare earth oxides via recycling of magnets and secondary materials
• Recycled rare earth oxides converted to metal and strip cast alloy to magnet specification by LCM, then made into magnets by GKN
• Rotor produced with the recycled material magnets passes a durability test cycle, with results equivalent to rotors manufactured with production magnets

Ionic Rare Earths Limited ('IonicRE' or the 'Company') (ASX: IXR) has made a major advance in building a sovereign and sustainable UK rare earth supply chain, with wholly owned subsidiary Ionic Technologies successfully leading a ground-breaking project to demonstrate a circular supply chain for high-performance electric motor Rare Earth Permanent Magnets (REPM). The supply chain encompassing Ionic Technologies, Less Common Metals and GKN successfully demonstrated full circularity and functionality for magnets used in Ford electric vehicle motors, following testing conducted by Ford at its R&D facility in Dunton, UK. The project has provided evidence that rare earth oxides (REOs) produced using Ionic Technologies' proprietary technology are not only appropriate for use in high-specification magnet supply chains, but also that the long-loop recycling method can enable a UK-orientated holistic supply chain that can deliver magnets equivalent to the existing supply chain. This is a significant breakthrough in achieving the UK Government's goal of reducing the nation's overreliance on foreign imports of critical minerals, protecting the UK from shortages in global shocks and shoring up supply chains. The collaboration required capability across all the parties involved to produce REOs, metal, alloy and magnets to Ford's standards. Ionic Technologies led the project, and produced high purity separated REOs using its magnet recycling and REE separation technology. The recycled material from Ionic Technologies, used to produce alloy by LCM, was made into finished NdFeB magnets at GKN's manufacturing site in Radevormwald, Germany. The recycled material behaved in the same way as flakes made from mined material during manufacture and produced magnets of the same end specification and performance. Ford provided OEM insight to the project, as well as use of manufacturing and test facilities. The rotor produced with the recycled material magnets passed a durability test cycle, with results comparable to rotors manufactured with production magnets.

Ionic Rare Earths will continue developing critical supply chain relationships via the CirculaREEconomy Project and other initiatives together with its industry partners. The Company is also continuing discussions with potential strategic investors to secure the remaining required equity capital for the £85 million project to support FID for the commercial plant.