Ionic Rare Earths (ASX:IXR) has received an offer in principle for £12 million in capital funding from the UK Government to support the development of a pioneering rare earth magnet recycling plant in Belfast.
The grant, provided via the DRIVE35 program, will underpin Ionic Technologies' wholly owned subsidiary in establishing a 400-metric-ton-per-year facility producing high-purity (99.5%+) separated rare earth oxides from pre-consumer and end-of-life magnets.
The Belfast plant, located on Queen’s Island, will be the first in the Western world to produce individually separated magnet REOs at scale, directly supporting the UK’s Critical Minerals Strategy by strengthening domestic supply chains for advanced manufacturing, defence, and renewable industries.
IonicRE is now advancing due diligence and discussions with strategic investors to secure the remaining equity required for the £85 million project, targeting first production within two years.
DRIVE35 funding aims to create highly skilled jobs, attract private investment, and accelerate the UK's transition to a sustainable, sovereign rare earths supply chain, with IonicRE’s facility expected to play a cornerstone role in meeting this national industrial strategy.
At the time of reporting, Ionic Rare Earths' share price was $0.56.