Ionic Rare Earths (ASX:IXR) has signed a joint venture term sheet with US Strategic Metals (USSM) to construct magnet recycling facilities in Missouri, US.
The agreement supersedes a memorandum of understanding announced in November 2025.
The proposed 50/50 JV aims to develop an integrated critical minerals production campus at USSM’s 728-hectare site near Fredericktown.
Under the JV, the parties intend to construct facilities to recycle neodymium-iron-boron and samarium-cobalt magnets and magnet scrap, while evaluating the recycling of heavy rare earth elements (HREEs) including europium, gadolinium, holmium, erbium, thulium, ytterbium, lutetium, and yttrium.
IonicRE’s Belfast subsidiary, Ionic Technologies, will also contribute a non-exclusive licence for its magnet recycling technology.
The project requires US$100 million ($140 million) in funding for initial construction, with USSM providing US$95 million. Both parties will then commit US$2.5 million each for the remaining US$5 million equity portion.
Managing Director Tim Harrison says the proposed JV provides a “practical and capital-efficient” way to build rare earth magnet recycling capacity in the US.
“Magnet recycling is a fast and low-cost pathway to developing a secure, sovereign and sustainable rare earths supply chain,” Harrison says.
“It is intended that the proposed JV will deliver on the capability already demonstrated at demonstration scale at Ionic Technologies in the UK to deliver a resilient supply of high purity, separated rare earth oxides for US industrial needs.”
US Strategic Metals Co-Founder and CEO Stacy Hastie adds that the agreement represents a “major step forward” for critical minerals supply chains.
“IonicRE has proven the capability of its rare earth permanent magnet recycling technology,” Hastie says.
“Now is the time to apply this on an industrial scale and we have the necessary, fully permitted site in Missouri to make this a reality.”
The initial US$5 million equity contribution is earmarked for the facility’s front end engineering design (FEED) and accelerated demonstration-scale magnet recycling.
The JV will be managed by a five-member board, with three managers appointed by USSM and two by Ionic USA.
Ionic USA will also chair a technical operations committee, lead technical, operational, and commercial matters, and procure feedstock.
The agreement aligns with the critical minerals framework signed by US President Donald Trump and Australian Prime Minister Anthony Albanese in October 2025.
The companies are progressing definitive agreements intended for completion by the end of 2026, subject to capital contributions and documentation.
Ionic Rare Earths develops sustainable, traceable supply chains for magnet and HREEs.
Write to Paula Fabe at Mining.com.au
Images: Ionic Rare Earths
