Ionic Rare Earths’ Belfast REO recycling facility applies for UK government funding

Ionic Rare Earths Limited has taken a significant step toward establishing a commercial-scale Rare Earth Oxide (REO) recycling facility in Belfast, Northern Ireland. Through its wholly owned subsidiary, Ionic Technologies, the company has applied for a major grant from the UK Government’s Automotive Transformation Fund, administered by the Advanced Propulsion Centre. The initiative could position the UK as a global leader in rare earth recycling while fostering regional economic growth.

The proposed Belfast facility, which builds on a successful feasibility study, aims to recycle rare earth magnets from pre-consumer scrap and end-of-life materials. This move is critical in creating a sustainable supply chain for rare earth elements, essential for advanced manufacturing and renewable energy applications. Ionic Technologies’ Managing Director, Tim Harrison, highlighted the transformative potential of this initiative, emphasizing its alignment with the UK Government’s net-zero ambitions.

Transforming Rare Earth Recycling in Belfast

The Belfast REO facility, designed for a brownfield site at Belfast Harbour, is expected to deliver significant economic and environmental benefits. The feasibility study projects a post-tax Net Present Value (NPV) of USD 502 million, an Internal Rate of Return (IRR) of 43.6%, and capital payback within just 2.4 years. With a proposed annual production capacity of 400 tonnes, the facility represents a 40-fold increase compared to Ionic Technologies’ demonstration plant.

This advancement is supported by pioneering technology developed at Queen’s University Belfast, which allows the efficient extraction and refining of rare earth oxides from recycled materials. The facility’s success could serve as a blueprint for similar projects in Europe, the United States, and Brazil, highlighting its scalability and global relevance.

A Game-Changer for the Automotive Industry

The funding application underscores the facility’s importance in the automotive sector, where rare earth elements are vital for manufacturing electric vehicle (EV) components. The collaboration between Ionic Technologies and strategic partners like Ford UK and Less Common Metals further cements this venture’s role in bolstering the UK’s EV supply chain.

Tim Harrison noted that the UK Government has consistently backed Ionic Technologies with previous grants. These contributions, totaling up to £5 million, have facilitated the development of innovative recycling techniques, including partnerships with Germany-based Vacuumschmelze and Swansea University.

Positioning Belfast as a Rare Earth Leader

The Belfast facility is poised to become the Western world’s first commercial producer of recycled rare earth oxides, providing the UK with a sovereign supply chain for these critical materials. First production is anticipated by late 2026, pending regulatory approvals and securing additional funding from strategic investors. Ionic Technologies expects to finalize investment decisions by early 2025.

As global demand for rare earth materials accelerates, driven by renewable energy and defence applications, Ionic Technologies’ facility could play a pivotal role in addressing supply chain vulnerabilities. The company’s proprietary technology offers a sustainable and traceable solution to meet the needs of advanced industries, reinforcing Belfast’s strategic importance in this burgeoning sector.