Key points
- IonicRE and USSM enter joint venture to build magnet recycling facilities in Missouri
- Joint venture aims to recycle rare earth magnets and scrap
- JV expected to be funded with $100 million, with $95 million from USSM
- IonicRE's Belfast subsidiary to contribute magnet recycling technology
Full summary
Ionic Rare Earths Limited (ASX: IXR) has entered into a joint venture term sheet with US Strategic Metals (USSM) to construct magnet recycling facilities at USSM's fully permitted site in Missouri, USA. The proposed joint venture aims to develop an integrated campus for the production of critical minerals and metals, including the recycling of permanent neodymium-iron-boron (NdFeB) and samarium-cobalt (SmCo) magnets and magnet scrap. IonicRE's subsidiary, Ionic Technologies, will contribute its magnet recycling technology. The joint venture is expected to be funded with $100 million, with $95 million from USSM and a $5 million equity contribution split equally between IonicRE and USSM. The initial $5 million equity contribution will be used to complete Front End Engineering Design (FEED) for the facility and accelerate demonstration-scale magnet recycling.