Ionic Technologies, a subsidiary of Ionic Rare Earths (IonicRE), has secured £11m ($14.8m) funding from the UK government for the CirculaREEconomy project up to 2027, to create a sustainable UK rare earth permanent magnet (REPM) supply chain.
Commencing on 1 August 2025, the project will produce high purity, separated rare earth oxides (REOs) necessary for electric drivetrain capability.
The funding, facilitated by the Advanced Propulsion Centre UK (APC), positions Ionic Technologies as a strategic player in the REPM supply chain, with a direct allocation of £3.1m.
IonicRE executive chairman Brett Lynch stated: “This is another significant demonstration of the UK government’s support for the development of a sovereign, secure and sustainable rare earth supply chain. Vision is important, but execution is essential and IonicRE is delighted by this additional support as we develop a fully integrated UK rare earth supply chain.
“IonicRE continues to build a global industrial business, to develop multiple magnet recycling plants located in the US and Brazil, adding to our established Belfast demonstration plant with its unique technology.”
Ionic will collaborate with leading German REPM manufacturers to produce top-quality sintered magnets for e-motors, focusing on a UK-based circular supply chain through long-loop recycling.
The consortium includes global sustainable materials company EMR, advanced rare earth metal and alloy manufacturer Less Common Metals (LCM),and subsidiaries of major automotive companies such as Ford Technologies and Bentley.
Wrightbus, the British Geological Survey (BGS), GKN Powder Metallurgy and Vacuumschmelze are also part of the initiative, which will see magnet manufacturing performed by partner organisations.
The APC’s DRIVE35 collaborative funding, part of the UK government’s commitment to low-carbon technology development, aligns with the objectives of the CirculaREEconomy project.
Ionic Technologies’ Belfast plant produces recycled, separated magnet REOs, moving swiftly to commercialise rare earth separation, refining and recycling.
With the UK government’s backing, Ionic Technologies is positioned to supply REE products for EV motors and drivetrain technology in the UK.
As the project officially commences, IonicRE will work with partners to deliver on schedule and continue engaging with the APC for additional capital grant funding.
This support is crucial for the development of a commercial plant in Belfast Harbour, fostering regional development and skilled employment.
China’s recent export restrictions on dysprosium (Dy) and terbium (Tb) have highlighted the urgent need for a secure and sustainable ex-China rare earth supply chain.