Ionic Rare Earths (ASX:IXR) has signed a non-binding memorandum of understanding with South Korea’s DNA Link (KOSDAQ:127120), to collaborate on the recycling of rare earth permanent magnets and magnet rare earth oxide supply.
Both companies, as well as Ionic’s wholly owned subsidiary Ionic Technologies, will collaborate to help build a secure, sustainable and traceable ex-China rare earths supply chain in South Korea.
South Korea is considered the world’s third largest magnet market and trails only the US and Germany as an importer of permanent magnets, importing more than 5,400 tonnes from China in 2021.
Under the MoU, both companies will aim to recycle swarf from DNA Link’s Korean plant through Ionic Technologies’ facilities and carry out a potential magnet rare earth oxide (REO) offtake from the Belfast magnet recycling facility to feed into DNA Link’s new neodymium-iron-boron permanent magnet capacity in South Korea.
Both companies will also collaborate on further value additions and supply chain initiatives, including converting REOs to metal, as well as cooperate on establishing US-based neodymium-iron-boron permanent magnet capacity.
The agreement also includes potentially collaborating with the South Korean Government and other international entities to establish sovereign capability in rare earths supply.
Ionic, which has a market capitalisation of $31.43 million, says it is aiming to formalise definitive agreements regarding collaborative engagement on the supply of swarf and magnets for recycling, offtake for magnet REOs, establishing joint ventures in target markets and collaborating on building US permanent magnet capacity.
Managing Director Tim Harrison says this is an opportunity for Ionic to secure swarf feed materials from and supply the recycled separated magnet REOs to DNA Link’s Korean facility, which is due to come online in 2026.
“Significantly, this will underwrite a portion of both the feed and product requirements for our Belfast commercial recycling plant, expected to commence operations in late 2026,” Harrison says.
“By applying the first mover capability offered by Ionic Technologies’ patented magnet rare earth recycling technology, our company can help build South Korea’s sovereign capability in rare earths and other international markets, developing a truly global ex-China supply chain.”
DNA Link CEO Jun Young Lee says this MoU marks a milestone in the company’s journey to become a global rare earth permanent magnet manufacturer.
“By combining our expertise in permanent magnet manufacturing with IonicRE’s advanced recycling and refining technologies, we are laying the foundation for a more sustainable, resilient, and innovative supply chain,” the CEO says.
“Together, we will not only enhance our capabilities in Korea, but also expand our global footprint, driving the future of clean technologies through responsible resource management.
“This partnership embodies our shared vision of establishing a full rare earth supply chain within Western countries and find alternative solutions to dependency on China.”
DNA Link aims to build an international permanent magnet production belt spanning South Korea and the US. The company is establishing a permanent magnet manufacturing facility in Yesan, South Korea. The facility will have a capacity for 1,000 tonnes per year of neodymium-iron-boron production, with first production targeted in late 2025.
Ionic Rare Earths is an emerging miner, refiner, and recycler of magnet and heavy rare earths which are needed to develop net zero carbon technologies.
Write to Aaliyah Rogan at Mining.com.au
Images: Ionic Rare Earths
